Bulls! Bears! Who Cares?
May 3rd, 2019 | Posted in InvestingIf you invest for the long term, it barely matters WHEN you invest
Are you concerned about investing with the market near all-time highs? Consider this: legendary investor Peter Lynch once ran a test to determine if stock market timing was an effective strategy. He started with two hypothetical investors. From 1965-1995, one invested $1,000 each year at the “best” time: when the market was at its lowest. The other invested $1,000 at the “worst” time: the market’s high point that year. The results:
Annualized compounded returns from 1965-19951
- #1 investing at “best” possible time: 11.7%
- #2 investing at “worst” possible time: 10.6%
Participating Is More Important Than Timing
It’s a waste of effort trying to predict a bear market’s end or a bull market’s beginning. If you’re investing for the long term, the most important thing is to invest and stay invested.
Zacks Advantage Can Help
Simple & easy: Opening an account and creating your portfolio only takes a few minutes Low cost: Your portfolio is actively managed for up to 75% less than typical advisors charge2 Performance driven: Management regularly evaluates holdings to seek enhanced performance Time tested: We use investing approaches refined over 30 years of asset management
Guessing is Not a Sound Strategy!
No one knows if the current market is at a peak. If you’re investing for the long term and waiting for a market pullback, reconsider that strategy. Rather than guess, consider investing now and keeping a long term perspective. Research suggests that, historically, it’s been the smart way to go.
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1 Source: Investopedia
2 According to a 2015 Cerulli Gobal Analytics study which reported an average 2014 annual explicit client fee for sub-advisory separate accounts of 1.64%.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss
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