The Ten Best Days with David Moser
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In this latest podcast episode, David Moser, wealth advisor at Vector Wealth, discusses the implications of missing just the ten best days in the market over 20 years. We look at a recent 20-year period of the S&P 500 stock index and find that its performance was halved from 9.8% annualized to just 5.6% when missing those precious 10 days.
Put another way, an initial investment of $10,000 in the S&P 500, left untouched for 20 years, would have grown to around $65,000. Being out of the market on those ten big-upward-move days would result in the investment being worth just $30,000. *
This episode serves as a reminder of the timeless adage in investing: it's about time in the market, not timing the market. We emphasize the importance of having a plan and sticking to it during periods of heightened uncertainty. Also avoiding the temptation to make emotionally charged decisions.
David points out that many of the best market days are clustered in time near the worst ones, making it nearly impossible to predict the optimal times to enter and exit the market. He advocates for a disciplined, patient approach, focusing on long-term growth rather than chasing short-term fluctuations.
Listen to this episode
Time … Titles:
00:04 – Introductions with David Moser
00:52 - The Impact of Staying Invested in the Market
01:39 - Navigating Market Turbulence Over Two Decades
02:21 - The Cost of Missing the Market’s Best Days
03:54 - The Challenges and Realities of Market Timing
05:01 - The Fundamentals of Successful Long-Term Investing
07:11 - Summary: The Importance of Discipline and Planning in Investing
08:15 - Regulatory
These discussions aim to spark dialogue about enhancing retirement readiness and making more informed financial decisions. At Vector, we delve into the nuances of scenario planning, offer insights and guidance tailored to each client's unique circumstances. If you or someone you know is pondering their financial future or seeking clarity on their retirement plan, we're here to help.
This discussion is with Vector’s David Moser, CFP® and Communications Director Ezra Firkins.
* The historical performance calculations are discussed for illustrative purposes only. Any calculations discussed are gross of fees and reflect the reinvestment of all dividends. If fees were included, returns would be lower. Past performance is not indicative of future returns. An individual cannot invest directly in an index.
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