But if you’re investing in a 401(k), daily market dramas are no reason to take dramatic actions with your portfolio.
There will be days when the market is up and days when it’s down.
What’s more, Ornstein said, “Typically, the best days in the market follow the worst days.” Over the past 20 years, he added, if you had stayed fully invested in the market throughout, your average annual returns would be nearly twice what they would have been had you missed the 10 best days.
Say you set up a portfolio of 70% stocks and 30% bonds but now it’s morphed into a 60/40 portfolio.
And since 1960 there have been far more positive annual returns on the S&P 500 than negative ones, Smith said.
Persons:
Doug Ornstein, you’re, ” Quincy Krosby, Andy Smith, it’s, Ornstein, Smith
Organizations:
New, New York CNN, Investment, LPL, Edelman
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New York, What’s