Beginning in late February, the market began to exhibit wide daily swings. This happens in markets from time to time and is something that we anticipate when we construct portfolios. These wide swings lead to some short-term price dislocations, but as things calm down an investors is likely to find that sticking to a diversified, risk-appropriate portfolio was the right decision.
Market history demonstrates that shortly following the market’s worst days are its best days. It may be tempting to try to miss the worst days, but in the long run it might be a risky strategy that exposes an investor to missing the best days!
Chart reflects $10,000 invested January 4, 1999, through December 31, 2018, with dividends reinvested.
Source: Morningstar Direct, J.P. Morgan Asset Management Returns based on the S&P 500 Total Return Index
Click here, to see an article from Yahoo Finance to learn more about the missing the best 10 days.
Click here, for an additional article on this concept.
DISCLAIMER: Please remember that past performance may not be indicative of future results. There can be no assurance that the future performance of any specific investment index referenced will equal any corresponding indicated historical performance level.
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