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Post by FD1000 on May 28, 2023 1:01:08 GMT
Some investors can successfully time their investment purchases/sales, but unfortunately this is a losing proposition for most. The market's best days and worst days often occur in close proximity. Missing just a few of the market's best days can significantly reduce long-term returns. For example, missing the 10 best days for the S&P 500 Index between 01/01/1980 and 12/31/2022 would reduce returns by approximately 55% vs. staying invested during the entire period.
www.fidelity.com/bin-public/060_www_fidelity_com/documents/dont-miss-best-days.pdfAgreed. One important point is that the big positive difference staying invested in the index includes the worst down days. Missing them would be great but clairvoyance is not my strong suit. That's a good point. Staying invested at all times is the right choice for most. But, here it comes, what if you stay invested but switch funds? and it doesn't have to be a huge %, it can be just 20%. If you get better, maybe 30%. You are also correct about good vs bad days, the investment institutions don't want to talk about it. Try to find article about missing the worse days at Fidelity/Schwab/Vanguard, all they talk about is missing the best days. See ( link).
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