Why Time in the Markets Beats Timing the Markets
In times of market volatility, it’s natural to feel uneasy. But one of the most powerful principles in investing is simple: time in the market beats timing the market.
Trying to predict the best days to invest—or when to exit—is extremely difficult, even for professionals. And missing just a few of the market’s best days can dramatically reduce your returns. According to a JP Morgan study, an investor who stayed fully invested in the S&P 500 from 2003 to 2022 would have earned a 9.8% annual return. But if they missed just the 10 best days, that return dropped to 5.6%. Missing the 20 best days? The return falls further to just 2.9%.
Here’s the catch: many of those “best days” happen shortly after the worst days—right when fear tempts investors to sell.
Long-term investing is about patience and discipline, not reacting to headlines. Markets have historically recovered from crises, recessions, and geopolitical shocks. Over the past 50 years, the global stock market has delivered strong long-term returns despite regular short-term drops.
Rather than trying to guess the perfect time to enter or exit, staying invested allows you to benefit from the market’s natural growth over time. A well-diversified, long-term strategy not only reduces risk—it keeps you focused on your goals, not the noise.
In uncertain times, the best move may be no move at all.
Stay invested. Stay disciplined. Let time do the heavy lifting.
