Five chart to start your day
Time in the market, or timing the market?
Missing the market's best days is horrendous. Watch this from J.P. Morgan Asset Management.
Source: J.P.Morgan
The best days (the dots) always occur during massive stock market corrections. But you also cannot afford to miss those best days. Here's why...
In a bear market, the market might plunge significantly one day, and the next it could surge dramatically. It will then experience alternating massive declines and increases, all the while following a sharp downward trajectory.
That's why we call this market volatility. You get both the best and worst days in quick succession.
This is literally the riskiest point to try and time the market, i.e., sell on the worst days and buy on the best. Nothing is predictable, and everything feels irrational. Fear takes over logic and leaves fundamentals in the dust.
What is the solution?
Just stay invested! Most investors don't. They forget their long-term goals and take huge risks trying to time the market and minimise losses during a downturn.
Coming up:
Industrial production in Germany and Italy since the launch of the euro
Indonesia is set to become the world’s sixth largest economy
Foreigners no longer have an insatiable appetite for US government debt
How the dollar took over pound sterling
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