the period, but to weather the market’s worst days.
Trying to time the markets to avoid the worst days typically results in investors missing the market’s best days. That’s because, by the time investors re-enter the markets, an upward trend has already been established, resulting in investors paying higher prices for securities as their values rise. Look at what potentially happens if you remain in the market, weathering its ups and downs. As the graph indicates, if investors remained fully invested in the S&P 500 from January 1995 through December 2014, they would have realized a 9.85 percent annualized return (not including fees and expenses). But if, due to trading or sitting on the sidelines, they missed the 10 best days during that same period, those annualized returns would collapse to 6.1 percent. Keep in mind that achieving those returns required our hypothetical investors to not carsoninstitutional.com Carson I stitutional Alliance 13321 California Street Dodge Plaza, First Floor Omaha, NE 68154 toll free 888.321.0808 fax 402.330.1668 illustrate this point, we’ve tackled several common investment myths and realities. Myth and Reality The Truth About Market Timing
Returns of S&P 500 Hypothetical growth of a $10,000 investment between Jan 3, 1995 and Dec 31, 2014
$70,000
Source: Business Insider, March 12, 2015
$65,453 (9.85% return)
$60,000
Six of the ten best days occurred within two weeks of the ten worst days
$50,000
$40,000
$30,000
$32,665 (6.10% return)
$20,000
$20,354 (3.62% return)
$6,392 (-2.21% return)
$13,446 (1.49% return)
$4,570 (-3.84% return)
$10,000
Missed 40 Best Days $9,140 (-0.45% return)
0
Fully Invested
Missed 10 Best Days
Missed 20 Best Days
Missed 30 Best Days
Missed 50 Best Days
Missed 60 Best Days
Now look at what happens if the same investors missed the 40, 50 or 60 best days in the market; annualized returns for the period fell to -0.45%, -2.21% and -3.84% respectively. The reason missing the market’ best days can do so uch damage is becaus gai s are not able to compound ov r the holding period. So an attempt to avoid the market’s worst days not only leads to potentially missing the market’s best days, but losing out on the power of compounded earnings over time, which help fuel future investment growth. Indexes are unmanaged and cannot be invested into directly. Unmanaged index returns do not reflect fees, expenses, or sales charges. Index performance is not indicative of the performance of any investment. Past performance is no guarantee of future results.
only remain invested to enjoy the market’s best during the period, but to weather the market’s worst days. Now, look at what happens if the same investors missed the best 40, 50, or 60 days in the market. Annualized returns for the period fell to -0.45 percent, -2.21 percent, and -3.84 percent, respectively.
The reason why missing the market’s best days can do so much damage is because gains are not able to compound over the holding period. An attempt to avoid the market’s worst days not only leads to potentially missing the market’s best days, but losing out on the power of compounded earnings over time, which help fuel future investment growth.
Investment advisory services offered through CWM, LLC a Registered Investment Advisor.
ONE - PAN Harvest Pasta 2 tablespoons vegetable oil 1 small eggplant, cut into 1-inch pieces (4 cups) 1 medium zucchini, coarsely chopped (2 cups) 2 tomatoes or 4 Roma tomatoes, coarsely chopped (1 cup) 1/3 cup chopped red onion 1 (19-ounce) can cannellini beans (white kidney beans), rinsed and drained 2 cloves garlic, minced
Sudoku
Ingredients •
Grid n°1669070380 easy
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1 3/4 cups reduced-sodium chicken broth 1 cup dried whole grain elbow macaroni 1/2 teaspoon crushed red pepper Ground black pepper (optional) Snipped fresh basil Grated Parmesan cheese Kosher salt
8 9 3 4 5 9 7
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7 8 3 5
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8 1 9 2 4
9 3 4 2 8 2 5 1 2 3
Instructions 1. In a very large skillet, heat oil over medium heat. Add eggplant, zucchini, tomatoes, red onion, and garlic. Cook, uncovered, 7–10 minutes or until vegetables are almost tender, stirring occasionally. 2. Add beans, broth, pasta, and crushed red pepper. Bring to a boil, then reduce heat. Cover and simmer 7–10 minutes more or until vegetables and pasta are tender, stirring occasionally. Remove from heat. Season with salt and pepper; top with basil and Parmesan cheese and serve. Recipe courtesy of midwestliving.com.
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