Stay invested – Don’t risk missing the market’s best days

We at Kramer Wealth Managers want to provide some brief comments about the stock market and the volatility we have seen lately. Yes, we know it has declined quite a bit recently. We want to remind everyone that stock market volatility is normal. During these times, people often wonder if they should take their money out of the market or just leave it alone. It causes a lot of uncertainty. I want to share with you some data from Fidelity Research.

If you had invested a hypothetical $10,000 on January 1, 1980 in the stock market and held your investment until March 31, 2020 without touching it, your hypothetical investment would be worth $697,421.

If over that same period of time, you had missed the five best days in the market- meaning the five days where the market increased by the most- that would cause your value at the end of the period to be significantly less. Missing those five best day s would result in your hypothetical $10,000 growing to $432,411; that’s a big drop from $697,421.

Now what if you had missed the 10 best days in the market? The results would be $313,377. And if you had missed the best 30 days, you’d have $115,481.

Finally, missing the best 50 days, you’d have only $48,484. You can see what a big difference it can make. So we want to encourage you to consider just leaving the investments alone and riding it out. Remember that stock market volatility is completely normal and investing is for the long-term and we shouldn’t focus on the short-term.

Adrianna Rocha

Client Relations Specialist

240-379-6929 V
240-439-6889 VP
512-379-6909 FAX

Adrianna Rocha joined Kramer Wealth Managers in 2021.

Adrianna is responsible for client experiences and service. As part of the customer service team, she strives to help and provide top-notch service to our clients. As part of her role, she communicates with clients through videophone, schedules client meetings, prepares and processes forms, and gathers information for our advisors.

Adrianna Rocha graduated with a Bachelor of Arts in Communication Studies from Gallaudet University in 2017. Before she joined our team, she worked in the customer service industry for nearly a decade. She excels in human-to-human relations and takes pride in not only her own accomplishments, but her clients’ as well. Adrianna enjoys chatting about her slight obsession with dogs, houseplants, essential oils, and food: especially Mexican food! She is also a proud fur-mama to her beautiful Aussie-mixed pup, Ziva.

Adrianna is not registered with Osaic Wealth.