How You're Missing The Best Days for Your Investments
Why Stock Market Dips Pay Off Long Term
August 19, 2020 | Sage Capone
How Weathering Your Stock Downturns Can Pay Off
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.
Stock Swings Are Normal
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!
The above 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
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.
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