Many investors try to time the market for the highest return. Timing the market does not work, as shown in the infographic below. It would also be equally as disadvantageous to try and time a recession for maximum return.
For an investor that invest in the S&P 500 in 1995, the average annual return yielded $65,000 for each $10,000 invested if the inverstor held until 2015.
The information below shows that if the investor tried to time the market and missed even the best 10 days, the return drops a dramatic 50% to $32,000. That is pretty substantial. Missing the best 20 days breaks the $65,000 return all the way down to $20,000 which is a near 66% loss!!
It is a fool’s game to time the market. Invest steadily and over a long period of time and, at least historically, you cannot lose.
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