Get our free report that examines why market timing rarely works for investors, and offers strategies to avoid the market timing trap.
Why Timing the Market Doesn’t Work.
Investors are human and emotional. When stocks are soaring, we get excited and are prone to take too much risk—often at the wrong time.
Conversely, when volatility erupts and negative headlines dominate, we may overreact and pull our money out of the market completely.
Both of these reactions are extremely harmful to long-term returns—and both are examples of attempting to time the market.
In 2023, the average equity fund investor earned a return that was -5.5% lower than the S&P 500, the 3rd largest underperformance gap in a decade. A report by the research firm Dalbar found that a big reason was that “investors tend to sell out of investments during downturns and miss out on rebounds.”
Our free guide, The Perils of Market Timing,1 examines these very common, destructive behaviors and offers some safeguards that can help investors stay on course with their long-term strategies.
In this guide, we’ll cover:
How Market Timing Can Impact Returns
How to Avoid the Market Timing Trap: 2 Steps
Bottom Line for Investors
If you have $500,000 or more to invest, request our free The Perils of Market Timing 1 guide today!
Talk to a Zacks Wealth Advisor today.
1 Zacks Investment Management reserves the right to amend the terms or rescind our free The Perils of Market Timing guide offer at any time and for any reason at its discretion.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. Zacks Investment Management, Inc. is a wholly-owned subsidiary of Zacks Investment Research. Zacks Investment Management is an independent Registered Investment Advisory firm and acts as an investment manager for individuals and institutions. Zacks Investment Research is a provider of earnings data and other financial data to institutions and to individuals.
This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting, or tax advice, or a recommendation to buy, sell or hold a security. Do not act or rely upon the information and opinions given in this document without seeking the services of competent and professional investment, legal, tax, or accounting counsel. Publication and distribution of this document is not intended to create, and the information and opinions contained herein does not constitute, an attorney-client relationship. No recommendation or advice is being given as to whether any investment or strategy is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors, or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole.
Any projections, targets, or estimates in this document are forward looking statements and are based on the firm's research, analysis, and assumptions. Due to rapidly changing market conditions and the complexity of investment decisions, supplemental information and other sources may be required to make informed investment decisions based on your individual investment objectives and suitability specifications. All expressions of opinions are subject to change without notice. Recipients should seek financial advice regarding the appropriateness of investing in any security or investment strategy discussed in this document.
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The S&P 500 Index is a well-known, unmanaged index of the prices of 500 large-company common stocks, mainly blue-chip stocks, selected by Standard & Poor's. The S&P 500 Index assumes reinvestment of dividends but does not reflect advisory fees or other expenses. An investor cannot invest directly in this Index. The volatility of the benchmark may be materially different from the individual performance obtained by a specific investor.
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It is not possible to invest directly in an index. Investors pursuing a strategy similar to an index may experience higher or lower returns, which will be reduced by fees and expenses.
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