I just finished reading a post, linked here, about an individual that entered the coronavirus pandemic with 50% of his wealth invested in stocks and 50% in bonds, sold a large chunk of it during the late March lows, witnessed the recent 20-30% gain in stocks, and now regrets his decision and wishes to invest again.
I share this information with you because I don’t want you to make the same mistake with your investments. Study after study of market performance has shown that stock market wealth is created in short bursts of gains—it’s not a trickle of 0.1% gains and penny per share rises.
For those of you who are data-minded, check out this study from Fidelity about the growth of $10,000 invested in the stock market on January 1, 1980. If you invested continuously in the S&P 500 during this time, your $10,000 would have grown … Read the rest of this article!