Chart Talk: March 12, 2025

When you’re going through a market correction, the last thing you want to hear sometimes is “stay the course”.? We hear this all the time as investors, and while you’re in the midst of it, inaction can be hard.? That’s not to say rebalancing back into your correct asset allocation isn’t a prudent thing to do, but that should take place periodically throughout the year.? Below is a chart of the cost of timing the stock market that was put out by JP Morgan Asset Management.? As you can see, if you invested $10,000 in the stock market in January 2003, and kept it invested until December 2022, you would have $64,844.? If you had missed just the 10 best days in the stock market during that time, your gains would have been cut in half, with a total of $29,708.? On top of that, 7 of the 10 best days in the stock market during this time took place during a bear market – which is psychologically the hardest time to stay invested.?

Although it may be uncomfortable, “staying the course” turns out to be the right move historically.? If you plan to retire at 60, and live until 80, based on historical metrics, you will live through 4 or 5 20% corrections – you will need to get comfortable being uncomfortable, especially as the retirement world has shifted away from the pension and toward the 401k which puts the stress of saving for retirement onto the employee.

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Additional information including management fees and expenses is provided on our Form ADV Part 2. The actual return and value of an account fluctuate and, at any time, the account may be worth more or less than the amount invested. Bond Investments are affected by interest rate changes and the credit-worthiness of the issues held in the portfolio. A rise in interest rates will cause a decrease in the value of fixed income positions.?Past performance results are not indicative of future results.”