Trying to time the market can be costly. If you’d invested $1,000 in the S&P 500 index in 1990, you’d have had $20,451 by the end of 2020. However, missing the best day reduced your total to $18,329. And, missing the 5 best days, reduces it to $12,917. Because a picture shows this so well, please check out the attached graphic from Dimensional Funds. Please also see the attachment for specifics on this calculation.
At Keener Financial Planning, we recommend a buy-hold-rebalance approach. Our approach is evidence-based and takes the guesswork out of investing. We don’t have to predict the market to have a positive investment experience!