Stay The Course and Invest Mindfully

March 29, 2022

With so much going on in the world, it can be tempting to invest based on emotions. However, history has shown that it’s best to remain calm, stick to your plan, and invest mindfully.

The benefit of staying invested

Staying invested pays off. During uncertain times and periods of volatility, some investors try to ‘time the market’ by buying and selling based on when they think the market will go up or down. However, it is difficult to correctly predict the best time to get both in and out of the market. Savvy investors understand the importance of sticking to their plan and investing mindfully through all market conditions.

The more you stay invested, the better

As you can see from the data below, staying invested in the market allows you to benefit from the best days. For example, if you had invested $100,000 in the stock market on January 1, 1986, and stayed invested, you would have had $1,506,240 at the end of 2020. If you had tried to time the market and missed out on the best days, your results would not have been as impressive.

Hypothetical returns for a $100,000 investment from 1/1/86 – 12/31/20 when the investor:

  • Remained fully invested $1,506,240
  • Missed the ten best days $488,180
  • Missed the 15 best days $357,320
  • Missed the 20 best days $257,310

Your investment strategy is designed with your long-term portfolio and financial planning goals in mind to keep invested for the long run.

Your advisor helps you remain disciplined and steadfast during times of increased market volatility.

Your Washington Trust Wealth Advisor helps you stay the course to preserve your investment strategy that’s in harmony with your long-term objectives, especially during periods of volatility and uncertainty. If you have questions about how political or economic events may impact your investment portfolio, please reach out to your advisor.

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This document is intended as a broad overview of some of the services provided to certain types of Washington Trust Wealth Management clients. This material is presented solely for informational purposes, and nothing herein constitutes investment, legal, accounting, actuarial or tax advice. It does not take into account any investor's particular investment objectives, strategies, tax status or investment horizon. Please consult with a financial counselor, an attorney or tax professional regarding your specific financial, legal or tax situation. No recommendation or advice is being given in this presentation as to whether any investment or fund is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors, or markets identified and described were, or will be, profitable.

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