Decisions made in the heat of the moment can have a big impact on our lives.
Selling when markets get rocky is a prime example. Periods of uncertainty can tempt us to make decisions that fly in the face of our goals. An analysis by the Schwab Center for Financial Research found that investors who missed just the top 10 trading days of 2009—a very volatile year for stocks—would have fared worse than those who stayed invested through the ups and downs.1
Market swings are an inevitable—and uncontrollable—part of investing. What is within our control is how we react to the ups and downs.
By sticking to your plan and ignoring the day-to-day buzz of the market, you’re less likely to make irrational decisions that could upend your goals. And if you ever need help putting together a plan that will serve you in good times and bad, we’re always just a phone call or click away.
President & CEO
1Schwab Center for Financial Research with data from Morningstar. Example compares two hypothetical $100,000 investments made on 01/01/2009. One portfolio remained invested for the full year. The other missed the top 10 best-performing days of the year. Market returns are represented by the S&P 500Ò Index, and top days are defined as the best-performing days during 2009. The year began on the first trading day in January and ended on the last trading day of December, and daily total returns were used. Returns assume reinvestment of dividends. Fees and expenses would lower returns. When out of the market, cash is not invested. Past performance is no guarantee of future results.