Where do we go from here?

Why should you stay invested in the stock market?

To experience the full impact of a stock market recovery, it's necessary to be invested in stocks. Stocks typically have higher return potential than fixed-income products and can help you "break even" after a loss much faster. Over the past 70 years, stocks have had an average total return of 10.40% and bonds 5.75%. ⁴ If you're down 40%, like many people this past year, it will take you almost 9 years to break even if your average return is 6%, but only 5.4 years if it's 10% - that's over a 3-year difference!

This table is for illustrative purposes only. This example is hypothetical and does not represent any John Hancock Funds investment product.

Jumping in and out of the market may cost you.

The fact is bull markets, and their substantial market gains, can happen suddenly and may occur in surges over a few days or weeks. If you wait for the economy to improve (or for the NBER to call a recession) before entering the market, you are very unlikely to achieve the best returns.

This table is for illustrative purposes only. The S&P 500 Index is an unmanaged index of common stocks used to measure stock market performance. It is not possible to invest directly in an index. Past performance is no guarantee of future results.

⁴ As of 12/31/08. Stocks as represented by the S&P 500 Index, an unmanaged index that includes 500 widely traded stocks. Bonds as represented by Barclays Capital U.S. Aggregate Index, an unmanaged index of U.S. Treasury and government agency bonds.