Given the volatility of the U.S. stock market, I wanted to revisit an age-old investing principle that seems to have been overshadowed by the latest news and advice.

When it comes to investing in the stock market, time, not timing, matters most.

Here’s why the smartest investors stick with the stock market for the long haul:

Emerging Market Indices: Emerging market indices offer some of the highest return potentials. For instance, the Nasdaq 100 Index, which includes 100 of the largest and most innovative non-financial companies listed on the Nasdaq Stock Market, has shown an attractive annualized return potential. From December 31, 2007, to June 28, 2019, it averaged approximately 13%. However, this index can also carry a higher degree of risk and volatility compared to others.

The S&P 500: Widely regarded as the best single gauge of large-cap U.S. equities, the S&P 500 includes 500 leading companies and covers approximately 80% of available market capitalization. While its annualized return of about 9% over the same period (December 31, 2007, to June 28, 2019) is lower than that of the Nasdaq 100, it comes with less volatility.

Long-Term Investing: Investing for the long term helps you avoid the pitfalls of emotional trading, which can negatively impact investor returns. Consider this: despite significant market downturns such as the Great Depression in 1929, Black Monday in 1987, the tech bubble in 2000, and the financial crisis in 2008, investors who maintained their investments in the S&P 500 or Nasdaq 100 would have experienced gains over the long term.

If you have questions or need guidance, please reach out. I’d love to discuss your plans and help you make the most of your investing years. Hope to hear from you soon.