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Alias Born 07/27/2011

OPT

Re: None

Wednesday, 05/09/2012 12:14:24 PM

Wednesday, May 09, 2012 12:14:24 PM

Post# of 160012
Read this..!

This was fwd email to me by my broker

Being an investor is tough. Nothing moves in a straight line.

A study done by DALBAR data released in March 2012 showed that the average stock fund investor made annual returns of only 3.49% over the last 20 years versus an annual return of 7.81% for the S&P500. The market seems cleverly calculated to play with emotions and prompt you to do the exact opposite of what you should be doing. It is key to long term outperformance to BUY in the BAD times.

Take a look at the following chart

S&P500 Stock Index Declines -1928-2012

Market Sell off 5% or More 10% or More 15% or More 20% or More
# of Occurrences 294 94 43 25
Mean # times per year 3.5 1.1 0.5 0.3
Mean Duration(days) 36 102 191 299
Mean Decline (%) 11 19.6 28.2 35.7
Source: Ned David Research 2012

Buying the dips will help your returns. Force money into the market during the lows not the highs. I would avoid trying to hit the exact bottom you will end up missing the boat.