But shouldn't you take your money out of the market during the down years? Well sure, if you can
accurately determine the top and bottom of the market. Otherwise you will end up getting out too
soon or too late, and back in either too soon or too late.
The big gains made over the past 25 years were concentrated in just 215 out of 9,100 days. If you
were out of the market on just some of these days, you missed out big time.
I will point out that there seems to be an advantage in avoiding September and early October. June,
July, and August are under-achieving months also.
Look at this. If you put $10,000 into the S&P 500 each May 1 and then sold on October 3, each
year from 1950 to 1999, your total profit would be $11,740. But if you put that same $10,000 in on
November 1 and sold on April 31, your profit would have been $386,384. Make sure you are fully
invested from November through April.
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- The Annual Report – How to Read
- Stock Market Analysts – Stock Market Advice and Tips
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