Missing Out

January 2003
Journal of Financial Planning;Jan2003, Vol. 16 Issue 1, p27
Academic Journal
This article reports on a study by asset management firm SEI Investments which revealed that investors who typically decided not to invest during stock market decline will miss early returns. Missing returns even in the first week of a recovery is costly, according to SEI, which studied 12 bear markets since World War II. For investors who stayed in the market through the bottoms and rode them back up, they gained on average of 32.5 percent the first year, and took 1.5 years to recover. Those who dithered for three months gained only 14.8 percent and took three years to recover.


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