Investors have had much to contend with in recent years: the pandemic, spiking inflation, rate hikes, tariffs, partisanship at home, and outright war abroad. The 2020s have certainly not lacked drama thus far.  If you feel like the market has been a little crazy during this period, you probably aren’t alone, and you’re definitely not wrong.

One way to quantify that feeling is to count how often the market has made a big move. The chart below does just that, showing the number of days in each decade when the S&P 500 rose or fell by 1% or more. The results speak for themselves.

A Decade Worth of Volatility in the 2020s

Source: awealthofcommonsense.com

We’re less than halfway through the 2020s, and we’ve already seen more large single-day moves (440) than we saw in all the 1950s or 60s. In fact, we are nearing the average total (507) and are on pace to become the most volatile decade. Only the 2000s, a period that saw the 9/11 attacks, the last two major US ground wars, the bursting of the technology bubble, and the Great Financial Crisis, seems to have a shot at staying ahead.

Surprisingly, the elevated volatility does not appear to have dampened returns. The 2020s have delivered average annual gains of 13.8%, well above the long-term average of 11.6% since 1950. That’s a sharp contrast to the 2000s when similar levels of turbulence led to a rare outcome: a full decade where the market finished in the red. That stretch earned the nickname “The Lost Decade.”

For more context, check out the average annualized return for U.S. stocks by decade:

• 1950s:  19.4% 
• 1960s:  7.8%
• 1970s:  5.9%
• 1980s:  17.5%
• 1990s:  18.2%
• 2000s:  -0.9%
• 2010s:  13.6%
• 2020s:  13.8%   

Source: Morningstar Direct. Data from 1/1/1950 through 5/31/2025. U.S. stocks represented by the S&P 500 Index.

The 2020s have tested investors' resolve like few periods before. A steady stream of unsettling headlines has triggered repeated calls to retreat from the market. In moments like these, it's easy to believe that this time really is different and that staying invested is a risk not worth taking.

Despite relentless headlines and wild market swings, disciplined investors have been rewarded rather than punished for staying the course. In the moment, staying invested can feel almost negligent, especially when fear is loud and headlines are flashing red. History shows again and again that long-term success is earned not by reacting to volatility but by rising above it. Those who can remain focused on their plan are the ones who ultimately come out ahead.

Source: MarketWatch

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