What happens when you fail at timing the market?

December 26,  2019

When we invest for the long term, regardless of recessions, political parties, or trade woes, it pays to stay invested. 

crystal ball

The impact of missing just a few of the market’s best days can be profound, as this look at a hypothetical investment in the stocks that make up the S&P 500 Index shows. A hypothetical $1,000 turns into $138,908 from 1970 through the end of August 2019.

Miss the S&P 500’s five best days and that’s $90,171.

Miss the 25 best days and your return dwindles to $32,763.

There’s no proven way to time the market—targeting the best days or moving to the sidelines to avoid the worst—so history argues for staying put through good times and bad. Investing for the long term helps to ensure that you’re in the position to capture what the market has to offer.

Market Timing by the Days

All expressions of opinion are subject to change. This information is intended for educational purposes, and it is not to be construed as an offer, solicitation, recommendation, or endorsement of any particular security, products, or services.