Chart of the Day: Cash is Rarely King

Today’s Chart of the Day from Fidelity’s "2026 Cash is Rarely King" presentation explores the outcomes of investing $5,000 at different points throughout the year versus holding the same amount in a cash-only portfolio from 1990-2025.

To no surprise, investing at the best possible time each year (the market bottom) produced the greatest returns. Investing $5,000 in one lump sum at the beginning of the year outperformed the monthly investment strategy, approximately $417 per month, by roughly 4.5% at the end of the period.

The most compelling takeaway is that investing at the worst possible time each year (the market peak) well outperformed the cash-only portfolio, rewarding investors with substantial gains regardless of any risk associated with timing. The chart serves as a powerful reminder of a fundamental investing principle: time in the market is more important than timing the market.