I worry you are making a huge mistake with your money…
What are you waiting for?
If you’re not taking advantage of this bull market yet, that’s my big question for you…
If you are nervous about the stock market, then you’re not alone.
Several investors I’ve talked to over the course of the rally were “waiting for a dip to get in at a better price.”
Then, when we got a dip, those same folks would get even more scared of the markets.
Now, we’ve been hitting new highs again. So let me ask you… are you nervous? Are you back to waiting for the next big crash before you put money to work?
This is a huge mistake.
Let me explain…
You probably know by now that I think a stock market Melt Up is just around the corner – where stocks make one final, dramatic push higher before a furious peak.
But the folks I have talked to are either trying to time it… or planning to sit on the sidelines.
My friend, trying to time when the Melt Up takes off could cause you to miss out on triple-digit gains.
You don’t want to wait until stocks start soaring… and THEN decide to get in.
Melt Ups are big and fast… The tech-heavy Nasdaq index alone delivered triple-digit gains in the final 12 months of the last great Melt Up.
Sitting on the sidelines and missing out on even a few big days during that time could’ve been deadly to your returns.
I’m telling you, don’t try to outsmart the Melt Up!
If you’re waiting on the sidelines for a buying opportunity, chances are, you’ll miss the good days. And as you probably know, you REALLY don’t want to miss out on the good days in the markets…
For example, if you had $10,000 in the S&P 500 Index over the past 20 years… but you happened to miss the best 40 days of market gains… you’d only be left with around $7,600.
If you kept your money invested the entire time, however, you’d have close to $30,000.
That’s right… Just 40 days meant the difference between losing $2,000 and making $20,000!
These results come from the investment-management company Index Fund Advisors. And you can see clearly what this means for your money today.
The table below shows what missing the best days of the market would have done to your returns over the 20-year period from the start of 1999 to the end of 2018…
The lesson is simple. Missing out on just a few big moves higher could mean not only missing triple-digit gains, but actually losing money.
And remember, this doesn’t include last year’s outstanding results. The S&P 500 Index as a whole soared 30% in 2019. You really didn’t want to miss the best days of that rally.
So if you’re still waiting for a chance to buy… or if you’re afraid to buy stocks at all… I don’t want you to miss out on what’s next.
This will likely be the last Melt Up opportunity for many people in their lifetimes. And certain stocks could return triple digits as the market moves higher.
People are always looking for a reason NOT to buy. Trust me, you can always find something.
There will be a time to be cautious. But that time is after the Melt Up.
We are not there yet. So again, I urge you – “make hay while the sun is shining”…
Good investing,
— Steve Sjuggerud
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Source: Daily Wealth