Dickmeyer Boyce Financial Management - Wisconsin

To which mentality do you subscribe........

Your lifestyle 👨‍👩‍👧 objectives drive your financial needs.

OR

Your financial means 💰 dictate your lifestyle.

“The only value of market forecasters is to make fortune-tellers 🔮 look good” (Warren Buffet).

The temptation to time ⏲️ your investments in the stock market is very real, and at the same time, very dangerous. If we’re honest, us Financial Advisors, with all of our supposed knowledge and experience, are tempted by it as well.

There has been talk of recession since the Fed began increasing rates back in March of 2022. Most economists got the timing of that wrong. While we are absolutely one day closer to the next recession, some macroeconomic indicators show that it does not appear to be imminent. Fear of recession often fans the flames 🔥 of market timing.

But consider these stats for the 10-year S&P 500 bull market run from 03/10/2009 to 03/08/2019 (MFS.com):

🤔 16.5%: Average annual rate of return

🤔 2,517: Number of trading days over those 10 years

🤔 8.6%: Average annual rate of return if you missed the 20 best days on a basis
of % gain

🤔 0.80%: The percentage (20 divided by 2,517) of trading days over this period
which, if missed, would reduce your return by almost 50%

Could you have timed those 20 trading days? If so, you’re in the wrong profession……you should be a Fortune Teller .