When markets are going up and down, it can feel like a safer move to just “sit out” until the market stabilizes. 

However, sitting out even a short time from the market can have long-term consequences.

For example, between January 2005 and December 2024, a $10,000 investment in the S&P 500 would’ve grown to $71,750 if left fully invested. 

However, missing just the 10 best market days during that 20-year stretch cut the ending value to less than half with $32,871. 

Missing 60 of the best days would have reduced the portfolio to just $4,712.

Many of those top-performing days occurred shortly after some of the worst declines, underscoring how difficult it is to time the market effectively. 

Trying to exit and re-enter at the “right” time often leads investors to miss key rebounds.

While no investment strategy can guarantee a profit or prevent loss, staying invested through market cycles may improve your chances of long-term success.

If current conditions have you second-guessing your approach, that’s completely normal. 

Consider speaking with a financial professional to help align your investment plan with your long-term goals.

https://am.jpmorgan.com/us/en/asset-management/adv/insights/market-insights/guide-to-the-markets/