The Advantage of Staying Invested

The Advantages of Staying Invested
Setting the path for your investment success

January 2019

Some people react to the market's ups and downs by making emotional decisions, buying investments when prices are nearing a high, and selling them when they're reaching a low. This type of emotional investing can lead to a person sitting on the sidelines during some of the market's biggest gains.

The challenge is that, once you've sold, you need to decide when to reinvest - and timing the market is extremely difficult. When prices start to climb, market timers often miss the initial rise because they're uncertain that the recovery is real.

Buy and hold investing

There's a school of thought that, rather than jumping in and out of the market, investors should remain invested for the long term, only withdrawing their funds when they need to.

For many investors, a traditional buy-and-hold approach to investing can achieve a positive outcome over the long term as the accompanying chart indicates.

That said, it may not be the best option for all investors. That's where working with a financial advisor to develop a customized portfolio suited to your needs makes sense.

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