Long-term holding strategy more advantageous than market timing
- 1Schwab conducted a study on S&P 500 returns from 2005 to 2024.
- 2Over those 20 years, investors who missed the 10 best-performing days saw an annual return difference of approximately 40% compared to the average S&P 500 return.
- 3The article explains that a strategy of long-term holding is better than attempting to time the market.
So what's the key point?
Schwab studied market returns over a 20-year period. Missing just the 10 best days results in a 40% difference in returns, so it is better to hold investments for a long time rather than trying to time the market.
Source The Motley Fool +1 · View original ↗
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