18 November, 2020 Total Client Experience

The Potential Huge Cost of Cashing Out

Some things are just totally unpredictable. Who would have thought after the large one day loss in the markets on Monday, March 23rd that the very next day we would see the 5th largest market increase ever.

 


 

To me this just emphasizes the risks of trying to guess where markets will go.
 

The chart below shows how $10,000 invested in the S&P 500 index, for the 20-year period of 1999 through 2018, would have performed under various scenarios.

 


 

To be fair I do not have a similar chart that shows the impact of being out of the market during the worst days. The problem is that we have no idea when the best or worst days will happen and “guessing” and “hoping” to get lucky about where the market will go is hardly a great strategy.

 

Thank you for taking the time to read this. I hope you found it enjoyable and of value. Please stay safe and healthy, keep your distance from others and follow health guidelines diligently.
 

Feel free to contact me personally should you have questions and pass this on to anyone who you feel may value from it.