Chart o’ the Day: Buying stocks before, during and after the peak

What a friend we have in time 
Gives us children, makes us wine
Tells us what to take or leave behind
– John Denver

The good thing about having a long-term time horizon is that, with dollar cost averaging of the sort you do in a 401(k) or similar account, the effects of market peaks are eventually blunted. It begins not to matter that some of your allocation to the stock market occurred at high points.

But that’s over multi-year periods and decades.

J.P.Morgan Asset Management is out with its 2019 Long-Term Capital Markets Assumptions piece this week and, in the chart below, they take a look at the effects of ten-year returns for investors buying the S&P 500 a year before the market peaks, at the peak, and then a year later. In none of these cases are the results egregious, and again, the chart assumes a one-time lump sum, which is not the way people actually invest IRL. But anyway, here it is…

Speaking of market peaks, do not miss Michael’s excellent survey of charts looking at the drawdown in Amazon this fall. It’s one of only 25 stocks that have added over $100 billion in market cap since the March 2009 bottom, and since then its shareholders have had to endure five (5!) separate drawdowns of 20% or more. Despite these recurring drawdowns, the stock has appreciated at roughly 40% a year on average, which is breathtaking.

Did you know that Amazon has lost more in market cap this fall than THE ENTIRE COMPANY WAS WORTH IN 2016? True story, link below:

A Top or The Top? (Irrelevant Investor)

Source:

2019 LONG-TERM CAPITAL MARKET ASSUMPTIONS EXECUTIVE SUMMARY (JPMorgan Asset Management)

What's been said:

Discussions found on the web
  1. The Natural Penguin commented on Sep 15

    … [Trackback]

    […] Read More here to that Topic: thereformedbroker.com/2018/10/31/chart-o-the-day-buying-stocks-before-during-and-after-the-peak/ […]

  2. airport transfer cheltenham commented on Sep 17

    … [Trackback]

    […] Find More on that Topic: thereformedbroker.com/2018/10/31/chart-o-the-day-buying-stocks-before-during-and-after-the-peak/ […]

  3. Where to buy THC concentrates online commented on Sep 23

    … [Trackback]

    […] Find More on that Topic: thereformedbroker.com/2018/10/31/chart-o-the-day-buying-stocks-before-during-and-after-the-peak/ […]

  4. immediate edge crypto commented on Sep 28

    … [Trackback]

    […] Read More on that Topic: thereformedbroker.com/2018/10/31/chart-o-the-day-buying-stocks-before-during-and-after-the-peak/ […]

  5. bitcoin era commented on Oct 02

    … [Trackback]

    […] Read More Information here on that Topic: thereformedbroker.com/2018/10/31/chart-o-the-day-buying-stocks-before-during-and-after-the-peak/ […]

  6. devops services commented on Nov 05

    … [Trackback]

    […] Here you will find 9783 additional Information on that Topic: thereformedbroker.com/2018/10/31/chart-o-the-day-buying-stocks-before-during-and-after-the-peak/ […]

  7. ดูหนังฟรี commented on Nov 20

    … [Trackback]

    […] Find More Info here on that Topic: thereformedbroker.com/2018/10/31/chart-o-the-day-buying-stocks-before-during-and-after-the-peak/ […]

  8. Sexy commented on Dec 28

    … [Trackback]

    […] Information to that Topic: thereformedbroker.com/2018/10/31/chart-o-the-day-buying-stocks-before-during-and-after-the-peak/ […]

  9. judi online commented on Dec 28

    … [Trackback]

    […] Read More Information here to that Topic: thereformedbroker.com/2018/10/31/chart-o-the-day-buying-stocks-before-during-and-after-the-peak/ […]

  10. Homemade Fromage Blanc - A true White Cheese commented on Jan 13

    … [Trackback]

    […] There you can find 25939 more Information to that Topic: thereformedbroker.com/2018/10/31/chart-o-the-day-buying-stocks-before-during-and-after-the-peak/ […]

  11. car report commented on Jan 15

    … [Trackback]

    […] Here you can find 20595 more Information on that Topic: thereformedbroker.com/2018/10/31/chart-o-the-day-buying-stocks-before-during-and-after-the-peak/ […]

  12. Bosch Dishwashers manuals commented on Jan 20

    … [Trackback]

    […] Read More here on that Topic: thereformedbroker.com/2018/10/31/chart-o-the-day-buying-stocks-before-during-and-after-the-peak/ […]

  13. test automation solutions commented on Feb 07

    … [Trackback]

    […] Find More Information here on that Topic: thereformedbroker.com/2018/10/31/chart-o-the-day-buying-stocks-before-during-and-after-the-peak/ […]