Missing the Best Days Long-term investing is relatively simple, but it isn’t always easy. Volatile markets tend to make investors nervous, particularly because, when the stock market drops, it receives much more attention than when it rises. We believe the best asset allocation policy in the world won’t matter much if you don’t stick to your long-term investment strategy. We don’t view stock market declines as a reason to sell quality investments. Rather, declines present an opportunity for investors with long-term goals to purchase additional investments at attractive prices. You want to be invested on the “best” days. The problem is that no one knows when these days will occur. We believe buying investments when you have the money available and staying invested gives you the best potential to achieve success. Below is an example of how your return can be impacted if you miss some of the best days to be invested. Investor Behavior Drives Investment Performance Value of a $10,000 investment in the S&P 500 $800,000 $900,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0 11.62% Average Annual Return $394,617 $229,087 9.43% 7.98% $142,897 6.74% Buy and Hold Missed 10 Days Missed 20 Days Missed 30 Days $93,475 5.63% Missed 40 Days $63,129 4.62% Missed 50 Days Source: Ned Davis Research, Edward Jones calculations. 1/1/1980-10/2/2020. These calculations assume the best days, as defined as the top percentage gains for the S&P 500, including dividends, for the time period designated. These calculations do not include any commissions or transaction fees that an investor may have incurred. If these fees were included, it would have a negative impact on the return. The S&P 500 is an unmanaged index and is not available for direct investment. Past performance is not a guarantee of future results. Dividends can be increased, decreased or eliminated at any point without notice. Dollar values rounded to the nearest $1,000. © 2019 Ned Davis Research, Inc. All rights reserved. Further distribution prohibited without prior permission. $883,952 Michael Kennedy Financial Advisor edwardjones.com Member SIPC 7100 Cypress Gardens Blvd Winter Haven, FL 33884 863-324-2486 RES-4736L-A EXP 30 APR 2021 © 2020 EDWARD D. JONES & CO., L.P. ALL RIGHTS RESERVED. 29
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