Not a Market-Timing Wizard? Stay Invested [CHART]

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Not a Market-Timing Wizard? Stay Invested [CHART]

By Become a Better Investor.

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Why There Is No Bitcoin ETF In The U.S. Yet

Digital Payment SystemShould you invest in cryptocurrencies? As with all investments, it depends on many factors. At the Morningstar Investment Conference on Thursday, Matthew Hougan of Bitwise, Tyrone Ross, Jr. of Onramp Invest and Annemarie Tierney of Liquid Advisors joined Morningstar's Ben Johnson to talk about portfolio allocations to cryptocurrencies. Q2 2021 hedge fund letters, conferences and Read More

  • During the 10-year time period studied, if you invested in the S&P 500 with a buy-and-hold strategy you would have gained a 58% return over the whole period
  • If you missed the 10 best days, your 100 would have become only 114 instead of 158, a 28% lower terminal wealth
  • If you missed the 10 worst days, your return would have ballooned to 226 instead of 158, which would be 43% higher gain than buy-and-hold
  • If you can perfectly time the market on best or worst days, well, great – do it!
  • Unfortunately, that’s a darn hard thing to do. For the average investor, it makes sense to stay invested

 

DISCLAIMER: This content is for information purposes only. It is not intended to be investment advice. Readers should not consider statements made by the author(s) as formal recommendations and should consult their financial advisor before making any investment decisions. While the information provided is believed to be accurate, it may include errors or inaccuracies. The author(s) cannot be held liable for any actions taken as a result of reading this article.

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