We’ve recently experienced one of the biggest stock market rallies in years…
After bouncing off its March lows, the S&P has now spiked by more than 40%.
However, many believe the current crisis we’re in is far from over…
For example, RBC’s Chief Equity Strategist believes current valuations are “frightening,” and is forecasting “downside risk to the US equity market in the back half of the year.”
And it seems many of your fellow Crowdability readers agree:
Based on the survey we conducted earlier this week, 70% of our readers predict it will take another three to nine months before this market truly turns around.
Given all this bleak news, perhaps you’re considering pulling your money out of stocks, socking it away in the bank, and waiting this storm out…
But as you’ll learn today, that would be a big mistake…
What Goes Down… Must Go Up!
You see, after every major crash since the Great Depression, not only has the market recovered 100% of its losses…
But it’s always gone on to reach new highs.
And while many investors understand this fact theoretically….
It’s not so easy to just sit there while your portfolio gets cut in half. It’s gut wrenching.
That’s why it’s so tempting to pull your cash out of the market and sit on the sidelines.
But here’s the thing…
Sitting on the sidelines could severely damage your investment returns.
Let me explain…
Imperfect Timing
Toward the end of last year, J.P. Morgan published a Retirement Guide.
Essentially, this guide revealed the devastating impact of “sitting on the sidelines.”
For example, over the 20-year period from 1999 to 2019, it shows that if you’d missed the market’s “Top 10 best days,” your returns would have fallen off a cliff…
Specifically, your profits would have been cut in half.
To see what I mean, check out this chart…
It shows how a $10,000 starting stake would have performed if you’d stayed in the market… or if you’d decided to run for the hills when the going got tough:
As you can see, if you’d stayed invested from 1999 to 2019 — throughout good times and bad — your $10,000 stake would have tripled into nearly $30,000.
But if you’d pulled your money out after the market crashes of 2000 and 2008 and you’d missed the 10 best trading days…
Your $10,000 stake would only have turned into about $15,000.
And if you’d missed the 20 best trading days, you’d actually have LOST money!
You Have To Be “In It to Win It”
That’s why you need to sit tight right now.
Regardless of how long you think it’ll take for this market to truly turn around, you need to keep your money in stocks.
Otherwise, when the market breaks out and soars to new highs, you’ll miss out.
But here’s where things get really interesting…
You could actually earn returns that are far bigger than what you saw in J.P. Morgan’s chart.
You see, as Matt and Lou have explained over the past couple of days, a crisis is actually an opportunity in disguise…
That’s why, starting next week, Lou will show you exactly how to turn today’s crisis into a massive profit opportunity.
So stay tuned!
Best Regards,
Founder
Crowdability.com
