What Happens When You Fail at Market Timing
The impact of being out of the market for just a short time can be profound, as this look at a hypothetical investment in the Russell 3000 stocks shows.
EXHIBIT 1
Russell 3000 Index Total Return
There’s no proven way to time the market—targeting the best days or moving to the sidelines to avoid the worst—so the evidence suggests staying put through good times and bad. Missing only a brief period of strong returns can drastically impact overall performance. We believe that investing for the long term helps ensure that you’re in position to capture what the market has to offer.
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