Chart of the Day: The Probability of Negative Returns

Today's Chart of the Day, "The Most Important Investment Chart You'll Ever See," is from The Motley Fool and serves as a good reminder for investors to think long-term.

The chart shows the probability of negative S&P 500 returns over various timeframes dating back to 1929.

The statistical chance of negative returns over short horizons like one day or even one quarter are what you might expect, although the chances for positive returns are greater.

Over longer periods, however, the advantage of staying invested becomes overwhelming. Historically, the probability of a negative return over a 10-year period has been just 6%, implying a 94% likelihood of a positive outcome.

Most strikingly, the chart shows that there has never been a 20-year period in which investors experienced negative returns. This reinforces the idea that the path to wealth may not be fast or smooth, but it is highly achievable for those who remain patient and disciplined.