Will your luck ever be so bad that you exactly miss the 20 best days in the stock market? Probably not. But trying to pick when to buy and sell increases your odds of missing at least some of the best days.
The stock market’s best days often coincide with its worst days. More than half of the top 20 best days in history took place during bear markets. And seven out of the last 10 best days took place within two weeks of the WORST days. These are the exact times that investors will hit the sell button and sit on the sidelines for a while.
BUT this is precisely the time that it is crucial to stay committed. Let’s look at an example. During the onset of Covid in March 2020, the S&P 500 was down 9% on March 12th, but then up 9% on March 13th! If you panic sold on March 12th, you would have missed one of the best days of all time!
Along your investing journey, remember the only way to not miss out on the market’s best days is to maintain ownership of your investments every single day of the year. Even when it’s tempting to try and time the market, you must remind yourself to NOT do this.
Stay the course and don’t worry about the noise in the market. This will not only improve your investment performance but it will also give you peace of mind and help you sleep like a baby!
As always, reminding you to build wealth by following the two PFC rules: 1.) Live below your means and 2.) Invest early and often.
-Vivi & Shane
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