By Shea Sanche, CFP® · Last reviewed: April 2026
Missing just a handful of the market's best days can devastate long-term returns. The data on time in vs. timing the market is clearer than most people think.
The phrase “Time in the markets beats timing the markets” is a revered mantra among investors. This wisdom serves as a timely reminder for investors to remain patient, especially during periods of market uncertainty.
Recent Context: July continued a stellar year for stocks, with the S&P 500 gaining 1.2%. However, the market reversed course in early August, shedding 7% in just five days. This sudden downturn signals a market correction.
Lessons from History
The legendary investor Sir John Templeton once famously warned, “The most dangerous four words in investing are: this time it’s different.”
Despite "Black Swan" events, the U.S. stock market has averaged a remarkable 10.83% annual return since 1970. predicting the next calendar year’s stock market performance is challenging. For instance, the S&P 500 delivered a stellar 24.2% return in 2023, yet even the sharpest forecasters missed the mark.
Three Lessons from Volatility
1. Diversification matters: Despite equities selling off, other assets such as bonds yielded positive returns.
2. Think long-term: Over a 10-year period, only 12.58% of fund managers have managed to outperform the US stock market. A buy-and-hold strategy remains superior.
3. Work with a financial planner: We help navigate down markets and make informed decisions with a long-term outlook.
Conclusion
Market corrections are inevitable, but they don’t have to be feared. History shows that those who remain patient and disciplined are ultimately rewarded.
Common Questions
Answers to the questions people actually ask.
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Key Takeaway
The cost of missing the market's best days is far greater than the benefit of avoiding the worst days. Staying invested through all market conditions, rather than trying to time your way in and out, is the most reliable path to long-term wealth creation.