How good is your aim?


Thomas Crandall, CFA, CFP®, CAIA, CMT | Senior Director, Asset Allocation – Ameriprise Financial

Business man pointing at investments on laptop.

Key Points

  • Successfully timing the market is all but impossible
  • The biggest up and down days in the market tend to occur within days of each other
  • In our opinion the best course is to keep focused on your long-term investment plan

May 19, 2022 – COMMITTEE PERSPECTIVES

The tug-of-war between the bulls and the bears has left investors anxious about what happens next. On the plus side, we have glimmers of hope that the consumer is both strong enough to weather the inflation storm, and willing to do so. On the minus side we have bearish price action in both stocks and bonds, war in Ukraine, shutdowns in China, and a Federal Reserve committed to tamping down inflation.

In conditions like these it is tempting to scrap long-term investment plans in favor of “sitting it out” and waiting until more favorable conditions exist. In our experience, and according to studies from Morningstar and DALBAR (amongst others), timing the market often leads to poorer outcomes over time.

Read the full report.