Many people react to the market’s ups and downs by making emotional decisions about their investments, for example buying when the stock market is nearing a high, and selling when the market reaches low points. This type of emotional investing leads to investors sitting on the sidelines during some of the market’s biggest gains.

Keeping money in the market over the long run means you get the full benefit from all up-market movements.  Even for the most experienced and educated investment managers, timing markets is very difficult to do, getting it wrong is very costly.

Several studies have shown that missing even a few of the best days can be expensive. Over the past 15 years, investors who kept $10,000 invested in MSCI World outperformed those who missed the best 10 days by $7,729*.  Therefore, investors who stayed invested even during the worst periods benefited from full participation during the best recorded days.

Please reach out to me if you would like me send you the historical data that shows this interesting analysis.

My investment philosophy is to always err on the side of caution and invest only in high quality companies, and dividend paying preferably. During market pull-backs, it is essential to not only remain invested, but to actually add to your investments in order to achieve the best outcome in your portfolios.

This is an amazing opportunity to purchase high quality investments that are basically “on sale”!

Have a wonderful weekend.

Yours truly,

Najia

 

Source: Mackenzie Investments, Morningstar as of March 31, 2017