• ABOUT – DICK YOUNG
  • YWMF – ARCHIVES

Young's World Money Forecast

Since 1978 With a 32 Year Vacation

  • DICK YOUNG
    • FROM RICHARD C. YOUNG
    • THE FINAL INTELLIGENCE REPORT
  • INVESTING STRATEGIES
    • RETIREMENT COMPOUNDERS®
    • GOLD & SILVER
  • DIVIDENDS & COMPOUNDING
    • MIRACLE OF COMPOUNDING
    • DIVIDENDS
  • GRAHAM & RUSSELL
    • BEN GRAHAM
    • RICHARD RUSSELL
  • THE DOW AND THE LEADERS
    • DOW vs. S&P 500
    • DOW vs. DOW DIVIDEND PER SHARE
  • WELLINGTON MANAGEMENT COMPANY
  • YOUR SURVIVAL GUY
  • BANK CREDIT & MONEY
  • THE PRUDENT MAN

Don’t Miss it All

August 31, 2018 By Richard Young

Emotionalism in the market is too damaging to your portfolio. It’s too easy to miss all the rewards of the market by making bad decisions trying to time the market. In February of 1992 I used this example to explain to readers just how badly they could lose out by jumping in and out of the market.

It’s Too Easy to Miss It All

Here’s another stunning analysis on why trading in and out is not for you. Analysis of stock market returns from 1946 through 1990 by Ibbotson Associates shows the following: One dollar invested in stocks in 1946 grew to $130.52 in 1990. If you take out just the best 30 months for the stock market over the 1946-90 period, the same one dollar grew to only $8.88, versus $8.43 for Treasury bills. Can you really time the market well enough to target the right 30 months in 45 years? Most certainly not.

And yet another example of how trading can kill your total returns. These direct quotes are taken from Forbes 28 October 1991. Professor P.R. Chanoy of University of No. Texas and William Reichenstein of Baylor conducted the research for these conclusions. The professors studied returns for the S&P 500 from 1926 through 1987. “They found that if the best 50 months—only 6.7% of the total time period—were deleted, the S&P 500’s entire 62-year return disappeared.”

In conclusion: Do not be a trader or a timer. Stay fully invested and ride out the storms in high-yielding, big blue chips that will bounce back no matter how violent a given market correction.

Nothing has changed in 26 years about market timing. It was a bad idea then, and remains so today. As I wrote at the beginning of this month, marry compound interest, divorce market timing.

Related

Filed Under: Investing Strategies

Compensation was paid to utilize rankings. Click here to read full disclosure.

RSS New From Young Research & Publishing

  • Your Survival Guy: JAWS, Woods Hole and YOU
  • New U.S. Magnet Plant Announced in Multibillion-Dollar Defense Deal
  • Trump Slaps 50% Tariff on Brazil
  • Billionaire Mining Entrepreneur Praises Trump’s Copper Tariff
  • Your Survival Guy’s Boat-Shoes-on-the-Docks View
  • Would the Pat Buchanan Plan Work Today?
  • U.S. and Israel Partner on AI and Energy Innovation
  • California Faces Fuel Price Volatility Amid Refinery Closures
  • New Tariff Rates Announced as U.S. Tackles Trade Deficit
  • Your Survival Guy: “You Wouldn’t Have Liked It”

RSS New From Your Survival Guy

  • Your Survival Guy: JAWS, Woods Hole and YOU
  • Time Stands Still: Against the Current
  • Are Private Equity’s Excess Returns Disappearing?
  • Your Survival Guy: “You Wouldn’t Have Liked It”
  • ESG Doesn’t Stand Up to Scrutiny
  • WARNING: Your Survival Guy and Gal in the Fog
  • Survival Guy: An All-Weather Balanced Portfolio
  • A Bazooka Fired at Private Equity
  • NYC, Crypto, ESG, the Haves and the Have-Yachts
  • Beware the ‘Democratization’ of Investing

Search Our Site

Richard C. Young & Co., Ltd.

–Client Letter Sign Up–

Sign up to receive email alerts when our latest client letter is posted on our website.

Copyright © 2025 · About Dick Young · Terms & Conditions