Missing out on just a few of the best trading days in the stock market can significantly impact your total returns. Studies have shown that even with perfect timing, the difference in accumulated assets after seven years between buying on the best day versus the worst day is only about $20,000.
In the last eight years, individuals who have stayed invested in volatile markets have made a 250% return. Despite the uncertainty and fear, every bear market in the history of the United States has led to a bull market in the following year.
This episode discusses the impact of missing the top trading days in the stock market. Even missing just a handful of days could result in a significant decrease in returns over a 20 year period.
Timing the market perfectly is a myth, studies show that consistent investment through strategies such as dollar cost averaging and staying invested can lead to better returns in the long run.