It's time in markets—not market timing—that counts
Being invested—and staying invested—is the key to achieving growth over the long term. While market volatility presents challenges, it is in times such as these that new trends and opportunities arise. Moreover, we work with clients to find ways to capitalize on these themes as they become apparent. The middle class in emerging markets is still growing, innovations in technology are continuing to change the way we communicate, and global demand for energy is on an upward trajectory over the longer term. The opportunity cost of doing nothing and ignoring trends such as these can be substantial.
Sitting on the sidelines also means you could miss out on market recoveries. In fact, research has shown that skipping only a handful of the market's best days can have a significant impact on investment returns.
Knowing exactly when to enter or exit markets is difficult, and missing only a handful of the best days can substantially reduce overall returns.
Value of $1 million invested in S&P 500 Index
(January 1988–May 2012)
Annualized total return of S&P 500 index
Missing best days (January 1988–May 2012)
For illustrative purposes only. this is a hypothetical example and is not representative of an actual client experience.
Source: J.P. Morgan. as of May 31, 2012. Past performance is not indicative of future results. The views and strategies described herein may not be suitable for all investors. This information is not intended as an offer or solicitation for the purchase or sale of any financial instrument. It is not possible to invest directly in an index. Please click here to view index definitions.
"Over the long term, insufficient exposure to risk can be just as detrimental to investment performance as excessive risk. Very simply, investors cannot avoid taking risk and achieve their longer-term investment goals."
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The views and strategies described herein may not be suitable for all investors. This information is not intended as an offer or solicitation for the purchase or sale of any financial instrument.
Past performance is not indicative of future results.