Weekly Market Commentary

It seems that whenever there’s extended volatility in the markets, many market-watchers begin to murmur about an economic slowdown or even a possible recession.  Attempting to get ahead of a potential downturn, some investors make short-sighted moves such as selling off large portions of their portfolios and remaining in cash as they attempt to wait out the storm.  History has shown that this is a rather precarious strategy and in many cases, has caused the very underperformance they were initially trying to avoid. In addition, missing out on the 10 best days in the S&P 500 index over the last 30 years would have significantly reduced returns for the unlucky investor who was jumping in and out of their investments.  And interestingly enough, of those best 10 days, 8 occurred during the Great Recession. This reiterates the old adage: “Time in the market beats trying to time the market.”

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