The stock market moves daily, and it can be aggravating to watch. Up, down, down, up…repeat. With this constant motion, just how often is the stock market actually up? Fortunately, we have the data to give us the answer.
- 53% of days are positive
- 71% of months are positive
- 78% of years are positive
The numbers do not lie, you have a higher chance of winning being in the market than out and those odds improve as your time horizon lengthens.
To put these figures into a more relatable context… what calibre of athlete could you be if you had similar stats? Have you heard of a famous tennis player by the name of Roger Federer?
Remarkably, his playing states closely mimic that of the market! Over the length of his entire career, Federer won 54% of the games he played, 75% of the sets, and 81% of the matches.
He did not win all the time and is still regarded as one of the greatest in the sport. This is a great lesson in how data can clarify our thinking. To be a successful investor, we need to let the long term odds do the work and not our emotions.