Episode 164: Why Timing the Market During a Recession Can Hurt Your Investment Returns

Why do people try to time the market? One reason is that they want to avoid losses during a recession. But the reality is that it’s very difficult to time the market effectively. In this episode, Melissa Fradenburg, CDFA®️, AIF® discusses whether it’s a wise investment strategy to time the market during a recession. We’ll look at some historical data to explore why pulling your money out of the market during a recession may not be the best move, and why trying to time the market can actually hurt your investment returns.

Timing the Market During a Recession – Resources:

•  Learn more about Pearl Planning or connect with Melissa Fradenburg.
• Read blog 5 Questions to Ask When Stocks Are Down.
•  Listen to Episode 163: Mortgage Rates and the Unlikelihood of a 2008 Repeat with Nathan Steiner
• Listen to Episode 117: Interest Rates, Inflation, And The Federal Reserve.
• Listen to Episode 110: Asset Allocation and Diversification with Melissa Fradenburg
• Listen to Episode 102: All About Emergency Reserves with Melissa Joy, CFP®, CDFA®
• Read about Beyond Investment Illusions.
• Sign up for our Spring 2023 Economic Update and Investment Outlook.

 Links are being provided for information purposes only. The information herein is general and educational in nature and should not be considered legal or tax advice. Tax laws and regulations are complex and subject to change, which can materially impact investment results. Pearl Planning cannot guarantee that the information herein is accurate, complete, or timely. Pearl Planning makes no warranties with regard to such information or results obtained by its use and disclaims any liability arising out of your use of, or any tax position taken in reliance on, such information. Consult an attorney or tax professional regarding your specific situation. Please note, changes in tax laws or regulations may occur at any time and could substantially impact your situation. Pearl Planning financial advisors do not render advice on tax matters. You should discuss any tax matters with the appropriate professional. Historical performance results for investment indices, benchmarks, and/or categories have been provided for general informational/comparison purposes only, and generally do not reflect the deduction of transaction and/or custodial charges, the deduction of an investment management fee, nor the impact of taxes, the incurrence of which would have the effect of decreasing historical performance results.  It should not be assumed that your Pearl Planning account holdings correspond directly to any comparative indices or categories. Please Also Note: (1) performance results do not reflect the impact of taxes; (2) comparative benchmarks/indices may be more or less volatile than your Pearl Planning accounts; and, (3) a description of each comparative benchmark/index is available upon request.