Market Timing Traps and Temptations
The markets had a fairly dramatic turnaround this July, even as national and global headlines remained relatively bleak.
S&P 500 Index – Annual Returns (1926-2019)
Since 1926, the US stock market has rewarded investors with an average annual return of about 10%. But it is important to remember that returns in any given year may be sky-high, extremely poor, or somewhere in between.
Understanding the range of potential outcomes can help you stick with a plan and ride out the inevitable ups and downs.
This post was prepared and first distributed by Dimensional Fund Advisors.
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The markets had a fairly dramatic turnaround this July, even as national and global headlines remained relatively bleak.
Being out of the market for even a short time can have profound effects. Missing strong returns can drastically impact overall performance.
Financial innovation provides investors with many new investment options, but how do you know if an asset is a good fit for your portfolio?
There is no proven way of market timing, whether it be targeting the best days or moving to the sidelines to avoid the worst.