FYR005: The 10 Best Days with David Moser

In this latest podcast episode, David Moser, wealth advisor at Vector Wealth, discusses the implications of missing just the ten best days in the market over 20 years. We look at a recent 20-year period of the S&P 500 stock index and find that its performance was halved from 9.8% annualized to just 5.6% when missing those precious 10 days.

Put another way, an initial investment of $10,000 in the S&P 500, left untouched for 20 years, would have grown to around $65,000. Being out of the market on those ten big-upward-move days would result in the investment being worth just $30,000. *

This episode serves as a reminder of the timeless adage in investing: it's about time in the market, not timing the market. We emphasize the importance of having a plan and sticking to it during periods of heightened uncertainty. Also avoiding the temptation to make emotionally charged decisions.

David points out that many of the best market days are clustered in time near the worst ones, making it nearly impossible to predict the optimal times to enter and exit the market. He advocates for a disciplined, patient approach, focusing on long-term growth rather than chasing short-term fluctuations.

Charts and video available on our blog.

Time & Section Titles

00:05 – Introductions with David Moser

00:52 - The Impact of Staying Invested in the Market

01:39 - Navigating Market Turbulence Over Two Decades

02:21 - The Cost of Missing the Market’s Best Days

03:54 - The Challenges and Realities of Market Timing

05:01 - The Fundamentals of Successful Long-Term Investing

07:11 - Summary: The Importance of Discipline and Planning in Investing

* The historical performance calculations are discussed for illustrative purposes only. Any calculations discussed are gross of fees and reflect the reinvestment of all dividends. If fees were included, returns would be lower. Past performance is not indicative of future returns. An individual cannot invest directly in an index.

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