There are many studies that indicate what happens to portfolios when they are not invested on days when the markets move up (or down) significantly.
Hypothetical growth of $1,000 invested in the S & P 500 in 1970 through August 2019 Total return $138,908 Minus the best performing day $124,491 Minus the best 5 days $90,171 Minus the best 15 days $52,246 Minus the best 25 days $32,763 Source: Dimensional Funds These are amazing statistics.
Missing just one day — "the best day" — in the last 50 years means you are making more than $14,000 less.
With the S & P 500 down nearly 20% for the year, he pointed out that just 5 days account for 98% of that loss.
The same as my example above: "It is impossible to know ahead of time which days will 'make the year' in either up or down markets," he said.
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