Well, it’s finally here… Masters Week. Yes, that’s right, it is my favorite time of the year. There is nothing quite like waking up on the Sunday morning of Easter and hearing the voice of Jim Nantz cascade across your television screen as Augusta National Golf Club is displayed in the background. I’ve never been to the Masters, but it is a dream of mine to attend! My pick this year is Scottie Scheffler. It has been 21 years since there was a repeat Masters champion. Yes, you guessed it, Tiger Woods (2001-2002).
If you’ve read any of my previous blog posts, you may be wondering the same question: what does this have to do with investing? My favorite current golfer, Jordan Spieth, has finished in the top 5 on five separate occasions at the Masters. He has only played in nine Masters golf tournaments. That is an incredible statistic. How is it that he has only won once? I’m not sure, but let’s examine an investing parallel. Let’s say Jordan Spieth tried to “choose” which Masters he should play in based on the status of his competitors, personal golf momentum, confidence, family life, current chairman of the Masters board, etc. Would he have known that 2015 was the year to choose to play and win? No, probably not. By consistently qualifying each year and playing in the Masters, Jordan Spieth has given himself many chances to succeed. Now, after 9 years of playing at Augusta, Jordan Spieth has won $5,261,828 at the Masters alone. The point is, Jordan Spieth could never know the “perfect” time to tee it up at the Masters. No investor can choose the perfect time to invest. With investing, we talk about remaining invested for the long-term; giving yourself the greatest amount of opportunities to achieve growth. Attached you’ll find a JP Morgan Guide to Retirement page that shows the impact of being out of the market over a 20-year period of time. If you miss the best 10 days over a 20-year period, it slashes your historical return average almost in half! You cannot time the market. So far this year, with ONLY negative news revolving around political uncertainty, GDP growth, inflation, and interest rate hikes, the SP500 is +7.03% after Q1 2023 (FactSet Data). If you invest consistently over time, you will capture good days and bad, but overall, you will give yourself the greatest opportunity to succeed by remaining consistent in your approach.
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