More often than not, investors find themselves buying high and selling low. And when the market starts selling off sharply, investors will panic, sell their own shares, and sit on the sidelines. Unfortunately, some of the biggest one-day upswings in the market occur during these volatile periods. In its 2014 Guide to Retirement, JP Morgan Asset Management illustrates what can happen to investor returns when they miss out on these good days. For instance, if an investor stayed fully invested in the S&P 500 from 1993 to 2013, they wouldve had a 9.2% annualized return. However, if trading resulted in them missing just the ten best days during that same period, then those annualized returns would collapse to 5.4%. Read more: businessinsider/cost-of-missing-10-best-days-in-sp-500-2014-3#ixzz2wvJ3NUJM
Posted on: Mon, 24 Mar 2014 22:50:02 +0000
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