December 27, 2009 – The New York Times – (Abstract) Those of us who stayed invested in the market and didn’t liquidate their holdings by fleeing into cash captured the most value from the dramatic market rebound in 2009. Senior Editor Paul J. Lim writes how the market advanced from March 9th, 2009 through December 17 by nearly 65%. His analysis shows that the later you re-entered the market, the more of the rally you missed. For example, if you entered the market a month after the rally began, say April 1, you would’ve missed 40% of your potential gain. If you entered two month after the rally began, you would’ve missed about 60% of the rally’s gain.
One of Lim’s major points is that investors need to stay true to their long term strategy and not get swayed to move in and out of the market during volatile years.
To read the full article: http://www.cnbc.com/id/34600443
