The most common action, Morningstar says, was to sell stocks in the first quarter of 2020, when the bear market hit.
That left these investors with a lower allocation to stocks just as the markets went on a ferocious tear.
Morgan Stanley took a look at the performance of the S&P 500 index for the 20 years through the end of 2020.
Morgan Stanley notes that in the past 20 years, six of the seven best days for the index occurred within two weeks of the worst day.
Set up an automated system for transferring money into your retirement account, regardless of what’s going on in the world and the markets.
A TDF handles all the allocation decisions for you, choosing an appropriate mix of stocks and bonds.
When Jack Bogle, the founder of the Vanguard fund complex, died in 2019 at the age of 89, many news outlets referred to the passing of the “patron saint” of individual investors.
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