Stay Invested Calculator
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Professional money managers who devote all of their time and resources to studying markets will often miss market ups and downs. Individual investors who try to pick the best time to be in or out of the market are usually less successful than the professionals. By using a long term buy and hold strategy, you can avoid one of the major risks of market timing – missing the market’s best performing periods.
Since the best and worst performing periods often occur next to each other, it is difficult to be in and out of the market at the right time. The best approach may be a buy and hold strategy with a diversified portfolio that may not reach the high “highs” of the market but will protect you from the low “lows.”
This calculator illustrates the importance of staying invested in the market. It shows the investment performance of $10,000 fully invested versus the same investment that misses the best performing months of the stock market. The calculator uses Canadian stock market data (S&P/TSX Total Return Index).