No market timing
Mar 02, 2023
Time in the stock market is superior to timing the stock market. This graph from Julius Baer impressively demonstrates the power of being a long term investor. Missing out on the 10 best days of the S&P 500 over the past 25 years would have cost the investor half of his return compared to the one who stayed fully invested. The long term investor would have turned 1 USD into 31.9 USD. The one who missed the 10 best days made only 14.9 USD. The one who missed the 50 best days had only 2.4 USD left for retirement. The conclusion: the odds that investors can add value by timing the stock market correctly are minimal. That is why we are long term investors at ECP.