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Whitaker-Myers Wealth Managers is an SEC-registered investment adviser firm. The information presented is for educational purposes only and intended for a broad audience. The information does not intend to make an offer or solicitation to sell or purchase any specific securities, investments, or investment strategies. Investments involve risk and are not guaranteed. Whitaker-Myers Wealth Managers reasonably believes that this marketing does not include any false or misleading statements or omissions of facts regarding services, investment, or client experience. Whitaker-Myers Wealth Managers has a reasonable belief that the content will not cause an untrue or misleading implication regarding the adviser’s services, investments, or client experiences. Please refer to the firm’s ADV Part 2A for material risks disclosures.

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Past performance of specific investment advice should not be relied upon without knowledge of certain circumstances of market events, the nature and timing of the investments, and relevant constraints of the investment. Whitaker-Myers Wealth Managers has presented information in a fair and balanced manner.

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Copyright (c) 2023 Clearnomics, Inc. and Whitaker-Myers Wealth Managers, LTD. All rights reserved. The information contained herein has been obtained from sources believed to be reliable, but is not necessarily complete and its accuracy cannot be guaranteed. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness, or correctness of the information and opinions contained herein. The views and the other information provided are subject to change without notice. All reports posted on or via www.clearnomics.com or any affiliated websites, applications, or services are issued without regard to the specific investment objectives, financial situation, or particular needs of any specific recipient and are not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. Past performance is not necessarily a guide to future results. Company fundamentals and earnings may be mentioned occasionally, but should not be construed as a recommendation to buy, sell, or hold the company's stock. Predictions, forecasts, and estimates for any and all markets should not be construed as recommendations to buy, sell, or hold any security--including mutual funds, futures contracts, and exchange traded funds, or any similar instruments. The text, images, and other materials contained or displayed in this report are proprietary to Clearnomics, Inc. and constitute valuable intellectual property. All unauthorized reproduction or other use of material from Clearnomics, Inc. shall be deemed willful infringement(s) of this copyright and other proprietary and intellectual property rights, including but not limited to, rights of privacy. Clearnomics, Inc. expressly reserves all rights in connection with its intellectual property, including without limitation the right to block the transfer of its products and services and/or to track usage thereof, through electronic tracking technology, and all other lawful means, now known or hereafter devised. Clearnomics, Inc. reserves the right, without further notice, to pursue to the fullest extent allowed by the law any and all criminal and civil remedies for the violation of its rights.

  • Writer's pictureSummit Puri
    • Sep 3
    • 2 min read

Timing vs. Time in the Market

Time in, or Timing investments

In an article written by our very own Clay Reynolds, he sets up this discussion really well. I’d recommend reading it before diving further into this discussion - Time in the Market vs. Timing the Market (whitakerwealth.com).

 

The age-old question of, “Can I beat the market by buying in low and selling high?” Ideally, we all want the ability to do so, and more importantly, we want to maximize these opportunities as they arise. However, think it through. The average investor is not nearly in the weeds enough to identify each of these opportunities. The reality is that when the news reaches the media, the maximum chance has already passed. If the average investor can’t time the market well, how do I maximize my returns?

 

Maximizing returns

Maximizing an investor’s returns is a function of how much risk they are willing to take. This is referred to as utility in finance. It is essential to align your utility with your strategic goals. Our team at Whitaker-Myers Wealth Managers can guide you toward this alignment. Remember, the investor’s risk tolerance, risk aversion, capability and capacity, and behavioral responses all aggregate to determine their risk score. Utilizing this score is an excellent methodology to align your comfort level with your strategies.

 

When maximizing returns outside the abovementioned factors, we recommend staying invested in the market. Thus, with more time in, the market vastly exceeds the outcome of trying to time investments. 

 

Let’s take a look at some data

 

The effect of missing the best market return days:


The graph above shows the impact of missing the best market days over the past 25 years. As you can see, missing the best ten days in this timeframe resulted in an annualized 3.31% underperformance compared to staying invested. This graph also highlights the importance of compound interest. The 3.31% annualized compounds to nearly $330,000! Continuing down the list, missing the best 50 total return days decreased the portfolio's value by 42%! Compound interest, asset class selection, and staying invested are key drivers of this success strategy.

 

Stay invested, even in downturns

It’s difficult, no question. When the market dives, as we saw in 2008 or during COVID-19, our initial reaction is to sell and save as much as possible before losing it all.  Inherently, we want to solve and save. However, isn’t this the right time to buy? The adage of buy low, sell high? Our intuition can sometimes be the biggest detractor of our financial success. Thus, aligning the investor's risk score with their strategies is important.

 

I always recommend having an expert with you on this journey. Our team at Whitaker-Myers Wealth Managers is not only capable, but we want to walk with you on your journey—schedule time with one of our advisors to get you on your way.

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Whitaker-Myers Wealth Managers is an SEC-registered investment adviser firm. The information presented is for educational purposes only and intended for a broad audience. The information does not intend to make an offer or solicitation to sell or purchase any specific securities, investments, or investment strategies. Investments involve risk and are not guaranteed. Whitaker-Myers Wealth Managers reasonably believes that this marketing does not include any false or misleading statements or omissions of facts regarding services, investment, or client experience. Whitaker-Myers Wealth Managers has a reasonable belief that the content will not cause an untrue or misleading implication regarding the adviser’s services, investments, or client experiences. Please refer to the firm’s ADV Part 2A for material risks disclosures.

​

Past performance of specific investment advice should not be relied upon without knowledge of certain circumstances of market events, the nature and timing of the investments, and relevant constraints of the investment. Whitaker-Myers Wealth Managers has presented information in a fair and balanced manner.

​

Copyright (c) 2023 Clearnomics, Inc. and Whitaker-Myers Wealth Managers, LTD. All rights reserved. The information contained herein has been obtained from sources believed to be reliable, but is not necessarily complete and its accuracy cannot be guaranteed. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness, or correctness of the information and opinions contained herein. The views and the other information provided are subject to change without notice. All reports posted on or via www.clearnomics.com or any affiliated websites, applications, or services are issued without regard to the specific investment objectives, financial situation, or particular needs of any specific recipient and are not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. Past performance is not necessarily a guide to future results. Company fundamentals and earnings may be mentioned occasionally, but should not be construed as a recommendation to buy, sell, or hold the company's stock. Predictions, forecasts, and estimates for any and all markets should not be construed as recommendations to buy, sell, or hold any security--including mutual funds, futures contracts, and exchange traded funds, or any similar instruments. The text, images, and other materials contained or displayed in this report are proprietary to Clearnomics, Inc. and constitute valuable intellectual property. All unauthorized reproduction or other use of material from Clearnomics, Inc. shall be deemed willful infringement(s) of this copyright and other proprietary and intellectual property rights, including but not limited to, rights of privacy. Clearnomics, Inc. expressly reserves all rights in connection with its intellectual property, including without limitation the right to block the transfer of its products and services and/or to track usage thereof, through electronic tracking technology, and all other lawful means, now known or hereafter devised. Clearnomics, Inc. reserves the right, without further notice, to pursue to the fullest extent allowed by the law any and all criminal and civil remedies for the violation of its rights.

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