Investing Newsletter - January 2024
In only six out of 97 years from 1926 to 2022 did the market have an annual return that came within two percentage points of the market’s long-term average returns of 10%.
It’s extremely important for investors to understand market volatility so they do not get too excited about a “good year” and too worried by a “bad year”.
The allure of trying to be in the market when it’s rising - and out of the market when its falling - is completely understandable. But timing decisions can often result in lower returns and increased stress.
By staying invested and focused on the long-term, investors increase the odds that they will participate in the returns the market has to offer.