Avoiding the worst-performing days can boost your investment returns massively!
In one of our earlier posts, we have written about the impact created by staying invested and what would happen to your investments if you missed just the 6 best years.
If you missed this reading, you can read it here: Why does staying invested matter in the markets? https://lu.ma/p/XXEHGdiZwd8mA6G/Why-does-staying-invested-matter-in-the-markets
However, we haven't seen much analysis on timing the market since that is fairly impossible to do. But what if?
What if you COULD time the market and stay out of the worst-performing days in the market?
What would happen to your returns then?
Well, they would be profoundly positive. Look at the light blue line at the top in the image below.
So if you want to try your luck, you can. But I'd say, don't. Cause the probability of timing the market is worse than the probability that you can win a lottery ticket.
Cheers!
End-Week Wisdom:
“Selling for quick 5-10% gains can give you a good income but holding for 500-1,000%+ gains is how you build wealth." - Ian Casel
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