The Power of Staying Invested
Some investors try to “time” the market, or buy and sell based on their guess about which direction the market will move next. By doing so, these investors often miss out on the best days. The graph below shows the difference between investors who stayed in the market during volatile periods with those who only briefly left but missed some of the market’s best days.
Returns of the S&P 500
Performance of a $10,000 investment from January 1st, 2003 to December 30th, 2022
Source: J.P. Morgan 2023 Guide to Retirement. Data is as of 12/31/22. S&P 500 Index is an unmanaged group of securities considered to be representative of the stock market in general. You cannot directly invest in the index.
How should investors react to this data?
1. Plan to Stay Invested
It is extremely difficult to time the market on a consistent basis. Market lows often result in emotional decision making. Investing for the long-term while managing volatility can result in a better retirement outcome.2. Manage Expectations
Short-term ebbs and flows of the market are normal and should be expected. When considering your next portfolio change, remember to view any changes in light of your long-term investment strategy and identify specifically what you want to accomplish.
Return to Participant Insights
For more information, contact your MCF Financial Advisor today!
Hunter Nighbert
Financial Advisor
hnighbert@mcfadvisors.com
859-967-0990
Schedule a meeting
IMPORTANT DISCLOSURE INFORMATION
MCF Advisors, LLC (“MCF”) is an SEC-registered investment adviser. Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by MCF), or any non-investment related content, made reference to directly or indirectly in this presentation will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this presentation serves as the receipt of, or as a substitute for, personalized investment advice from MCF. To the extent that a reader has any questions regarding the applicability of any specific issue discussed herein to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. MCF is neither a law firm nor a certified public accounting firm and no portion of the presentation content should be construed as legal or accounting advice. A copy of MCF’s current written disclosure statement discussing our advisory services and fees is available upon request. If you are an MCF client, please remember to contact MCF in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing / evaluating / revising our previous recommendations and/or services. The scope of the services to be provided depends upon the needs of the client and the terms of the engagement.