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Imagine investing in the stock market for 25 years and missing the 10 best market days. Would it really matter? After all, 10 trading days represent no more than 1/625 of a quarter of a century of trading sessions. Consider the example of the S&P 500.
Final value of USD 100’000 invested from 30 Sep 1999 to 30 Sep 2024:
Source: Bruderly, A. (2025, January 22). Missing the Best Days in the Market: The Up and Downs of Staying Invested. Journey Wealth. https://journey-wealth.com/missing-the-best-days-in-the-market-the-up-and-downs-of-staying-invested/
In brief, missing just a few of the market’s strongest days could reduce the final value of the investment by a factor of 2 or 3. The exact impact varies by period, but the principle remains consistent: a small number of extraordinary trading days often account for a disproportionate share of long-term returns.
But why would a long-term investor miss these best days? That’s the tricky part. Investors naturally want to avoid losses and wait for certainty before re-entering the market. Unfortunately, this sense of certainty typically returns only after prices have already recovered.
Many of the strongest gains have occurred shortly after sharp market declines, such as during the aftermath of the 2008 Great Financial Crisis or the market recovery following the COVID pandemic in 2020. By trying to avoid the worst days, investors almost guarantee they will miss the best ones.
This is the reason why one of the most powerful lessons in investing is “time in the market beats timing the market”.
In the end, the evidence is clear, successful investing is less about forecasting the next market move and more about staying committed to a well-designed strategy.
Alpian’s investment solutions encompass diversified portfolios with strategies tailored entirely to your unique life goals and risk parameters. Always with wealth advisors by your side.
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Disclaimer : Investments involve risks, including the possible loss of invested capital. The value of investments can fluctuate and there is no guarantee of making profits or avoiding losses. Diversification does not ensure a profit or protect against a loss. Potential investors should consult a qualified financial advisor before making any investment decisions. Please read the full risk warnings and other relevant documents on our website before investing.
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