Often enough, you will hear from conventional financial planners that quickly entering and exiting certain stock market investments has the realistic possibility of being a futile endeavor, and usually the explanation “why” simply focuses on the fact that stock market prices are fickle in the short term and can take years and years to correctly reflect the value of the enterprise you have in mind. That’s absolutely part of the equation, but there is more to it than that: almost all of the stock market’s gains come in very short bursts that are wildly unpredictable.
If you removed the 100 best days in stock market history since 1926, you would lose 33% of your wealth. That is mind boggling to think about—the companies that make up the major indices such as the Dow Jones and the S&P 500—do not move in some linear fashion that give you 10% returns each … Read the rest of this article!
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