Trying to time the market may cause an investor to miss out on long-term growth. Let’s take a look at the impact of missing the best one % of days over 30 years while investing $10,000 in S&P/TSX Composite Price Index (“TSX”)
As history of the markets has demonstrated, during previous bear markets, Canadian equities eventually recovered and resumed their upward trend. That’s why it’s important to remain focused on your long-term investment objectives and consider staying invested to allow your portfolio the opportunity to participate in any upward market moves. As you can see int he chart below, investors who attempt to time the market or sell during bear markets, may miss out on significant returns during prolonged recovery periods and bull markets.
TD Asset Management