The Master’s Minute – In Defense of Staying Invested

The Master’s Minute – In Defense of Staying Invested

April 30th 2019 | Posted in Blog, Master's Minute

When we view a volatile market in hindsight, there is a temptation to wish we had pulled out of the market before it went down and then jumped back in right before it started going up again.

Wouldn’t it have been great to have gotten out of the market at the beginning of October last year before the market started to decline and then have gotten back in immediately before it started to rally at the end of December?

But what if you got lucky and got out at the right time but then waited too long to get back in?

According to BTN Research:

  • The total return for the S&P 500 over its recent 10-year bull market run was a gain of 17.5% per year.
  • But if you missed the 20 best percentage gain days of that 10-year period, you cut that annual gain in half (8.6%).
  • That’s 20 days total, not 20 days per year.
  • 20 days out of 2,517 trading days.

What are the odds of guessing those 20 days?

Our counsel continues to be: Don’t try to time the market, but rather, if you have a time horizon of five years or more, stay invested.

If you employ that strategy, you won’t miss those really good days!

Robert B. Miller | CRC® Advisor

Email Robert B. Miller

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