Opportunistic: a common trait amongst successful investors over the last 100 years. While there have been many recessions over the last century, the stock market has continued its trajectory higher. That’s not to say specific industries or sectors have come and went (think many technology companies in the late 1990s), but investors with diversified portfolios have prevailed.
The example below illustrates a hypothetical between an opportunistic and apprehensive investor. The result is very simple: adding money when the market drops instead of taking money out when it drops has yielded superior outcomes over long periods of times.
If you believe those opportunities don’t come around that often, look no further than below. Historically speaking, the S&P 500 has dropped 10% once a year.
Drawdowns happen more than investors realize. When they do, will you be the opportunistic or apprehensive investor?
