Reacting Can Hurt Performance

Our long-time clients have heard us talk about staying disciplined during market volatility and the idea that timing the market is a losing game. This chart shows the downside of being out of the market during the 1, 5, 15, and 25 best performing days. While it is tempting to try avoiding down days in the market with the thought of getting back in before a turn-around, history shows that investors rarely get that timing right and pay a heavy price for getting it wrong.