Chart of the Day: Don't Sell When the Market is Down
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Production of the U.S. penny has officially ended. Learn what this means for you.
Today’s Chart of the Day from Visual Capitalist shows the impact of missing just a few positive days over the last 20 years. If you've followed the blog for a while, you already know that missing just a few days can be devastating to your account. As an example, investing $10,000 and missing just 40 out of the previous 5,040 trading days, your investment goes from $65,000 to only $8,048.
This chart also notes something new: Seven of the 10 best days took place during bear markets, where the market was down 20% or more. This reinforces the idea that selling when the market is down is not a good move.
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