Thread by @shdwinvestor

Quick thread on why TIME IN THE MARKET is better than TIMING THE MARKET?

Data from JP Morgan's Asset Management shows from January 2nd, 2001 to December 31st, 2020, for the S&P500, seven of the 10 best days occurred within two weeks of the 10 worst days.

Let me repeat that.

Seven of the 10 best days are current within two weeks of the 10 worst days.

So what do realise from this data?

Not only could you not time the market, but there's a good chance that if you try to time the market, you may miss those good days.

In times of panic or anxiety, sometimes investors may rush to sell.

ShadowInvestor™ encourages investors NOT to get out of the market, STAY INVESTED in the market.

Because if we go back to the stat & you go back to January 2nd, 2001 through year-end 2020,

if you remained fully invested, you generated an average annual return of about 7.5%.

What I'm about to say might shock you.

If you were out of the market over those 20 years almost for just the 10 best days, so if you only missed the 10 best days in two decades,

your return drops down to 3.35%, you return gets cut in half if you just miss 10 days out of two decades.

This is why ShadowInvestor™ reminds investors to stay calm and stay grounded.

We know that over a long period of time, stocks go up every 3 out of every 4 years and we know that over a long period of time, stocks deliver somewhere in that 8-10 percent annualized return per year.

That's a really good return that you don't want to miss out on.

#Stock #Stocks #StockMarket #StockMarkets #longterminvesting #finance #ShadowInvestor

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