On Friday, June 24, 2022 at 11:52:22 AM UTC-4, Ralph Mowery wrote:
> In article <
bae26ccc-cf60-439f...@googlegroups.com>,
>
comawhit...@gmail.com says...
> >
> > > You would still have to admit we would be better off without Biden.
> >
> > You would still have to admit that Trump is a liar, a cheat and a complete asshole.
> >
> >
> My kind of man. I know where I stand with people like that.
>
> I was over $ 150,000 better off not too long ago under Trump. Hard to
> tell how much lower the IRA and other stocks will go.
The "IRA and other stocks"?
An IRA is an account shell. Stocks are investments. What investments you
hold in the IRA account determines the value.
> Just glad I
> parked a lot in cash just after the election or would have been out
> twice that or more.
You are not "out" anything unless you sell your investments when they are
down. The question is: Do you know when to get back in?
Have you happened to notice that the stock market *always* goes up? The markets
reach all-time-highs after every reversal. Look what happens to investors who are not
in the market when it rebounds.
(This is just one of many studies. The numbers may vary slightly, but the outcome is
basically the same)
https://www.wellsfargo.com/investment-institute/sr-perils-time-volatile-markets
"Our research suggests that missing a handful of the best days over longer time periods
drastically reduces the average annual return an investor could gain by simply holding on
to their equity investments during market sell-offs. Over the past 30 years, missing the
best 30 days (based on S&P 500 Index returns from September 16, 1991 through September
15, 2021) took the annual average return from 8.5% per year down to just above the average
inflation rate of 2.2% over that same period. Our research also showed that over the same
time period, missing the best 40 days took the average annual return to below 1%, and
missing the best 50 days resulted in a -0.3% annual return, on average."
As some folks have been known to say "Time, not timing, is the best way to capitalize
on stock market gains."