What long-term investors know about time in the markets
On any given day, the probability of experiencing a loss is basically a coin toss — the longer you stay invested, the greater the likelihood of positive returns.
There is a decreasing probability that an investment that tracks the S&P 500 will suffer negative returns the longer you stay invested. In fact, when you invest for 1 day, your probability of negative returns is 46 percent; for 1 month it's 38 percent; for 1 quarter it's 32 percent; for 1 year it's 25 percent; for 3 years it's 16 percent; for 5 years it's 10 percent; and if you remain invested for 10 years your probability of negative returns is only 6 percent.
Source: S&P 500; Bloomberg; BofA Global Research. Data as of March 31, 2022. Data reflects probability of negative equity returns going back to 1929 based on S&P 500 performance.
Past performance does not guarantee future results. It is not possible to invest in an index.