- As the bull market turns 2, investors who stayed patient through market lows are celebrating significant gains.
- Many missed out on the recovery by succumbing to fear and poor timing.
- It’s time to reassess if your portfolio hasn’t captured the market’s double-digit growth.
In October 2022, I was invited to Rome by a group of managers from a prominent Italian bank. The setting was impressive, but the task at hand—presenting to a room full of private clients about the state of the markets—was daunting.
At the time, markets were down nearly 25% for the year, and skepticism filled the room. Despite the uncertainty, I closed my presentation with a bold statement:
"If you don’t buy now, when will you?"
Just days later, the market hit its low for the year, although I couldn't have known it at the time. When I followed up with those managers a year later, I asked how many of their clients had acted on my advice.
The response? Very few. Even worse, some had panicked and sold as the market began to rebound.
Now, two years have passed since that October low, and we’re celebrating a remarkable bull market. The S&P 500 has surged more than 60% since then, with total gains now exceeding 20% from the pre-bear market peak in late 2021.
But here's the real question: How much of that gain did you capture?
Were you able to hold strong, or did fear drive you to sell at the worst possible moment? Are you missing out on market returns because of poor timing, or are there deeper issues at play?
The reality is that many investors aren’t reaping the full rewards of the market due to three common pitfalls:
- Lack of market knowledge – Not truly understanding what they’re investing in.
- Misplaced trust in advisors or managers who push commission-heavy products that erode long-term gains.
- Behavioral mistakes – Letting fear or euphoria drive decisions at the worst times.
The market, in all its volatility, is the ultimate judge. And often, the best strategy is to do as little as possible—staying patient and resisting the urge to constantly jump in and out.
If your portfolio isn’t showing double-digit gains after nearly three years, with one down year followed by two strong ones, it’s time to reassess your strategy—either with your advisor or yourself. Remember, what you lose, someone else gains.
Happy birthday, bull market. Here’s to the investors who stayed the course.
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Disclaimer: This article is written for informational purposes only; it does not constitute a solicitation, offer, advice, counsel or recommendation to invest as such it is not intended to incentivize the purchase of assets in any way. I would like to remind you that any type of asset, is evaluated from multiple perspectives and is highly risky and therefore, any investment decision and the associated risk remains with the investor.