Hindsight is 20/20. It’s only human to imagine what it might have been like to turn left instead of right on some fateful day. However, that sort of daydreaming is unhelpful when investing, especially when it leads you to try timing the market.
Since the beginning of the COVID-19 outbreak, we’ve seen a great deal of volatility. But, in the two months since March 23rd’s record low, the S&P 500 has risen 33%. While past performance doesn’t guarantee future results, it shows how quickly market sentiment can change. 1,2
I prefer a disciplined approach to investing. I combine a person’s goals, time horizon, and tolerance for risk with my own understanding of the overall economic landscape. It boils down to this: in timing the market to avoid the “bad” day, you risk missing the “good” days, too.
Missing even just a few of those “good days” can really add up.
A national investment firm looked at a $10,000 investment into the S&P 500 for 38 years. By missing only the five best days over that period, the investment grew to $458,476. Meanwhile, if the money remained in the account untouched, it would have grown to $708,143. Past performance is no guarantee of future returns, but this illustration shows the long-term power of “time in the market vs. timing the market.” 3
As your financial professional, I understand that volatility can cause anxiety, and it can be tough to sit still when it’s happening. But as we’ve seen lately, it may sometimes be best to tune out the noise and trust the strategy that’s already established.
I always look forward to answering your questions, so if you have any, please reach out and let’s set up a time to talk. If you’d like, a recent Epic Market Minute video quickly discusses the importance of taking a few shots when you have a chance.
The S&P 500 strung together 37 record highs this year aboard an 18.1% rally, as of July 10. The advance has largely been powered by a handful of mega cap names tied to technology and/or artificial intelligence. In fact, six stocks — NVIDIA (NVDA), Microsoft (MSFT), Apple (AAPL), Amazon (AMZN), Meta (META), and Alphabet (GOOG/L) … Continue reading “Market Performance is a Tale of Haves & Have-Nots”
Investors are people, and people are often impatient. No one likes to wait in line or wait longer than they have to for something, especially today when so much is just a click or two away.
You can prepare for the transition years in advance. In doing so, you may be better equipped to manage anything unexpected that may come your way.
When developing your estate plan, you can do well by doing good. Leaving money to charity rewards you in many ways. It gives you a sense of personal satisfaction, and it can save you money in estate taxes.
How healthy a retirement do you think you will have? If you can stay active as a senior and curb or avoid certain habits, you could potentially reduce one type of retirement expense. Each year, Fidelity Investments presents an analysis of retiree health care costs. In 2023, Fidelity projected that the average 65-year-old couple would … Continue reading “Retirement Wellness”
Epic Capital provides the following comprehensive financial planning and investment management services: Learn More >