Home | Buy-and-Hold vs. Market Timing

Buy-and-Hold vs. Market Timing

Have you ever panicked and sold during a stock market decline?  How about got too greedy and invested too much near the top of a bull market?  A recent study by DALBAR, a financial research firm, has shown how the general temptation for investors to try and time the stock market often results in these types of behaviors.  This has actually resulted in investor returns significantly lagging the broader markets over the long haul.  The chart below illustrates that, rather than following trends during market highs and lows, investors would be better off by staying invested during all stages of the market.

Source: American Funds

We help people come up with a plan for their financial security every day.  We discuss your goals and your dreams, help you determine how much you need to save to meet them, work with you on determining your appropriate investment risk, execute your plan on your behalf and keep you regularly informed.  And when markets get too high or too low, we help you stay the course instead of letting panic or greed take over.

In short, we work with you to take the worry out of saving for retirement.  Because there are plenty of things in life to worry about without having to worry about your financial security. – Stacey 

Stacey Wall serves as Chief Executive Officer at Pinnacle Trust. You can reach him by emailing him at swall@pinntrust.com or by calling the office at 601-957-0323.

 

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