Stay on Track to Get Ahead
Many people react to the market’s ups and downs by making emotional decisions about their investments, buying when the stock market is nearing a high, and selling when the market reaches low points. This type of emotional investing leads to investors sitting on the sidelines during some of the market’s biggest gains.
Keeping money in the market over the long run means investors get the full benefit from all up-market movements. Over the past 15 years, investors who stayed invested even during the worst periods ensured full participation during the best recorded days.
Timing markets is difficult to do well, and costly to get wrong
Missing even a few of the best days can be expensive. Over the past 15 years, investors who kept $10,000 invested in MSCI World outperformed those who missed the best 10 days by $11,363 ($16,630 in TSX), or 3.16% p.a (4.33% in TSX).
Speak to your financial advisor for more information.