The Weekly Update 5/31/2024 Written by Brittany Jarocki CFP, (Jim's business partner, daughter and the succession plan Jim hopes he never needs).                                               

In the first five months of 2024 we have seen markets achieve all-time highs and subsequently retreat thereafter. Markets don’t go up in a straight line – increases and new records are attained through ebbs and flows over time.

The above graphics are important ones to remember as we continue our journey as long-term investors. 

The pie chart on the left shows that an astonishing 78% of the stock market’s best days happen during Bear Markets or during the first two months of a bull market. This is very important information! If investors are too timid during a bear market and choose to sit on the sidelines until the recovery is in full swing, they will miss a large majority of some of the best days in the market!

The bar graph on the right shows the ramifications of missing those best days in the market. If an investor were to miss 10 of the best days, their account balance would be 54% less than if they had stayed invested.

Missing the best 30 days would reduce returns by a whopping 83%.

I repeat: Markets do not go up in a straight line. This is why The Wealth Strategies Group client base has a long-term investor view. We are owners of Corporate America, not renters, and having an investable time period of at least 5 years is crucial.

Remember, success comes from “time in the market” not trying to “time the market”!

I’m interested in your thoughts, comments, and observations.  Feel welcome to call, email, or stop by the office and say Hi.

Respectfully,

James O. Lunney, CFP®

CERTIFIED FINANCIAL PLANNER™ Professional  

Securities and advisory services offered through LPL Financial, a registered investment advisor. Member FINRA/SIPC. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments.

All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested in directly. The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful. Stock investing includes risks, including fluctuating prices and loss of principal.

Asset allocation does not ensure a profit or protect against a loss.  Value investments can perform differently from the market as a whole.  They can remain undervalued by the market for long periods of time.