close menu

Market timing has significant risks

Markets have up and down days. It’s virtually impossible to predict their direction on a day-to-day basis.

Trying to predict their movements results in an attempt to time various sectors of the market. 
Asset classes investors are required to move in and out of the market in order to enhance returns. Being out of the market can be costly. 

The graph below illustrates how a hypothetical equity investment would have been affected by missing the best performing days over a 20-year period from 1994 to 2013. The benchmark investor who remained invested over the entire period would have accumulated £41,946, while the investor who missed just five top performing days would have only accumulated £28,858.

missing-top-performing-days-can-hurt-your-return



Contact our wealth team

South Africa

Cape Town

Regent Square
Doncaster Road
Kenilworth 7708 +27 (0) 21 657 2120

Durban

201 The Annex
Ridgeside Office Park
Umhlanga +27 (0) 31 536 8843

United Kingdom

London

Castlewood House
77/91 New Oxford Street
WC1A 1DG +44 (0) 20 7759 7514

Croydon

5-7 Selsdon Road
South Croydon
CR2 6PU +44 (0) 20 7759 7581

Australia

Melbourne

9 Yarra Street
South Yarra
VIC 3141 +613 (0) 8651 4500

Sable International is a trading name of 1st Contact Money Limited (company number 7070528) registered in England and Wales. Sable International is authorised and regulated by the Financial Conduct Authority in the UK (FCA no. 517570), the Financial Services Conduct Authority in South Africa (FSP no. 41900) and holds an Australian Financial Services License issued by ASIC to deal in foreign exchange (AFS License number 335 126).

Our United Kingdom business, Sable Private Wealth Management Ltd, is authorised and regulated by the Financial Conduct Authority. Our Companies House registration number is 222501. Our authorisation can be checked on the FCA register here: www.fsa.gov.uk/register/home. Our South African business, Sable Private Wealth (Pty) Ltd, is an authorised FSP, regulated by the Financial Services Conduct Authority under licence number 48122.

This site uses cookies, read more or close this notice.