Resource · Investing
The Cost of Timing the Market
What missing the best 10, 25, or 50 days has actually done to long-term returns.
When markets fall, stepping aside until things calm down can feel prudent. This piece shows why trying to time the market has been costly in the past, and what we do instead.
What’s inside
The cost of missing the best days
A historical illustration of how missing a small number of strong market days affected long-term results.
Why strong days come during bad markets
Why the best days have tended to cluster near the worst ones.
What the brain is doing
Four common mental habits, such as feeling losses more sharply than gains, that can push investors to act at the wrong time.
The mistake we see most
How a series of small, reasonable-sounding delays can add up to years out of the market.
What we do instead
Holding stable reserves for spending, rebalancing on a schedule, harvesting tax losses, and measuring progress in years.
Stay in your seat
Download the piece and keep it for the next time markets get rough. Past performance is no guarantee of future results.
This content is for informational purposes only and is not individualized advice.