The Inside Press

Magazines serving the communities of Northern Westchester

The Inside Press

You Can’t Time the Market

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By Richard Bloom

Why You Should Avoid Practicing Market Timing

There are many things that could affect the overall equity market and any individual stocks you may own—from economic trends to geopolitical events like an election. What is certain is that the market will always have its peaks and dips.

This market cycle can make it tempting for investors to attempt to buy and sell stocks at particular times to maximize gains and avoid down periods. This investment strategy is known as market timing, the practice of moving in and out of the market based on predicting when the market will shift.1

Missing out on Market Moves

Although the idea of market timing can be tempting, it is also extremely difficult for most investors to predict the future of the market. In fact, those who try to time the market may actually underperform investors who simply buy and hold stocks.2

One reason is the tendency of the market to experience big upswings and downswings on adjacent days during periods of market volatility. That means an investor who sells after a substantial down day for the market may miss a subsequent period of gains. Also, many investors let emotions dictate their actions, leading them to buy stocks when the market has already gained in value, only to sell when the market has declined, leading to sluggish returns. Moreover, even with sophisticated tools to analyze the factors affecting stock prices, it is very difficult to forecast future stock market movements.

Also, missing out on just some days in a market cycle can drag down returns considerably. The S&P 500 generated an annualized return of 9.6% between 1990 to 2018 for investors who were invested during that entire period. Investors who missed just the 15 best days during that period only enjoyed returns of 3.6%, and investors who missed the best 90 days actually suffered an annualized loss of 3.5%.3

Market Timing Can Carry Costs

Along with possibly missing out on market gains, market timing can have other penalties. The transaction costs from buying and selling stocks can add up and drag down overall returns. In addition, investors who do sell stocks for a gain will likely trigger capital gains taxes, again reducing their overall profit.1

Creating and staying with a financial strategy can help you avoid making rash moves in response to what’s happening in the market. A Financial Advisor can help you tailor a framework that’s set against your long-term goals and considers key aspects of your financial life, from your age and aspirations to current market opportunities. While market conditions may vary, a personalized, adaptable wealth strategy that’s centered around your life goals should remain a constant as you build your wealth and plan for your future.

FOOTNOTES

1 – https://www.investopedia.com/terms/m/markettiming.asp
2 – https://www.forbes.com/sites/simonmoore/2016/03/07/the-myth-of-market-timing/#53448611461e
3 – Morgan Stanley Client Conversations & Primers, Intro to Investing PDF – Market Timing Is a Flawed and Costly Strategy Charts

DISCLOSURES

Article by Morgan Stanley and provided courtesy of Morgan Stanley Financial Advisor.

Richard Bloom is a Financial Advisor in 1290 Avenue of the Americas, New York, NY 10104 at Morgan Stanley Smith Barney LLC (“Morgan Stanley”). He can be reached by email at Richard.Bloom@morganstanley.com or by telephone at (212) 893-7597.

This article has been prepared for informational purposes only. The information and data in the article has been obtained from sources outside of Morgan Stanley. Morgan Stanley makes no representations or guarantees as to the accuracy or completeness of the information or data from sources outside of Morgan Stanley. It does not provide individually tailored investment advice and has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. The strategies and/or investments discussed in this article may not be suitable for all investors. Morgan Stanley recommends that investors independently evaluate particular investments and strategies, and encourages investors to seek the advice of a Financial Advisor. The appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives.

Morgan Stanley Smith Barney LLC (“Morgan Stanley”) and its Financial Advisors and Private Wealth Advisors do not provide any tax/legal advice. Consult your own tax/legal advisor before making any tax or legal-related investment decisions.

Richard Bloom may only transact business, follow-up with individualized responses, or render personalized investment advice for compensation, in states where he is registered or excluded or exempted from registration, http://brokercheck.finra.org/Search/Search.aspx.

© 2018 Morgan Stanley Smith Barney LLC. Member SIPC. CRC 2297755 11/2018

What We Love About Breezemont

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Courtesy of Breezemont Day Camp

1. Our highly trained staff and very high camper to counselor ratios

2. Our well balanced range of activities

3. Our new facilities and fields

4. Our beautiful lake

5. Our towel service

6. Our Red Cross Certified Swim Program and heated pools

7. Our nut free, no outside food policy, hot lunches and allergy specialist on site at all times

8. Our Registered nurses at camp each day

9. Our qualified and experienced  leadership team

10. Our wonderful Breezemont families that create our special community

Visit us at breezemontdaycamp.com.

Tzahal Shalom of Northern Westchester Brings Israeli Reservists to New & North Castles

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A delegation of Israeli reservists visited New and North Castles this November. Their 10-day visit was organized by the non-profit Tzahal Shalom of Northern Westchester. During their limited “free” time, they also had the chance to read Inside Chappaqua and Inside Armonk magazines.

For the 13th year in a row, a delegation of seven reservists from the Israel Defense Forces called New and North Castles their “home away from home” during a 10-day visit this November. During their stay organized by Tzahal Shalom of Northern Westchester, the reservists attended many speaking engagements where they spoke about their experiences in the Israel Defense Forces. They spoke to every demographic in our communities: high school and middle school students, adults, seniors, college and university students, Jewish and non-Jewish alike.

During the program, the delegation begins to understand the support they have from our communities in Northern Westchester and returns to Israel with a renewed spirit and great pride. In return, our communities build relationships with these special individuals.

Tzahal Shalom of Northern Westchester has been bringing delegations to the community since 2006. They are a registered 501(c)3 not-for-profit organization, led entirely by a dedicated team of volunteers. For more information, visit tzahalshalom.org

The Best Volunteer Opportunities: Where to Lend a Hand Locally in 2020

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COURTESY OF (914) CARES

Tatum Krase, Emma Schwartz, Molly Reinmann, and Amanda Pohly volunteer to sort clothing at Kids’ Kloset. PHOTO COURTESY OF (914) CARES

Planning on making a New Year’s Resolution to give back to your community? Have a teen who would like to volunteer? We sat down with (914) Cares’ CEO, Jessica Reinmann to put together a list of the top 10 volunteer opportunities in Northern Westchester.

1. Kids’ Kloset – Pack a “Bag of Love” for a child in need.

Kids’ Kloset provides underserved Westchester County children with donated clothing, books and related items. For more information, go to www.914cares.org/kids-kloset.

2. Baby Bank – Stock the shelves with donated baby items.

Baby Bank provides basic necessities and essentials for babies, 0-2. The mission is to help local families in need keep their babies clean, healthy and happy. For more information, go to www.914cares.org/baby-bank.

3. Coachman Family Center – Host a holiday celebration for children.

Located in White Plains, the Coachman Family center has over 60 homeless children in their youth program at any given time. Create a fun-filled afternoon with food, activities and games. For additional information, contact angela.damore@westhab.org.

4. Neighbors Link – Cook dinner for Family Night.

Neighbors Link’s mission is to strengthen the whole community through the healthy integration of immigrants. Every other Friday, an evening workshop is offered to Neighbors Link families and a buffet dinner is needed. For more information, please contact mpalomino@neighborslink.org.

5. DonationDrives – Collect urgently needed items.

DonationDrives helps individuals and groups coordinate and manage collection drives for those in need. For more information, go to www.914cares.org/donate-things.

6. JCY-Westchester – Read to a child.

Help kids become life-long readers at one of the 26 programs run by JCY-Westchester Community Partners.  Programs are run during the school day, right after school and over the summer. For more information, please contact mfinesmith@jcy.com.

7. Ossining Schools – Sort donated books.

The Ossining School District is committed to making sure every student has access to books at home. Sort through donated books so we can help create these home libraries. For more information, please contact info@914cares.org.

8. #FilltheVan – Help gather diapers and wipes for babies in need.

#FilltheVan is a community-wide diaper and wipe drive that helps struggling families. Participants will receive flyers, program brochures and collection boxes and on February 14th, we will pick up all of the collected donations. For more information, please go to www.914cares.org.

9. Cottage School – Host a Lunch Bunch.

The Cottage School helps abused, neglected and traumatized children heal physically and emotionally through compassionate, quality care. Lunch bunch occurs once a month, during the week for adults and on the weekends for teens. For more information, please contact rosenthals@jccany.org.

10. Volunteer at your local Food Pantry.

21% of Westchester residents are food insecure and your local food pantry provides essentials to those in need. For more information, please contact your local food pantry or send an email to info@914cares.org.

 

 

Horace Greeley Scholarship Fund’s Spelling Bee Raises More Than $20,000 and Delights Crowds

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The Horace Greeley High School gym was packed on November 4th for the 10th Annual Horace Greeley Scholarship Fund Spelling Bee.  Spirits were high as students, teachers & administrators, families, and community members came together to share in this special event which was enjoyed by participants and spectators alike. More than 60 teams competed this year, not only to be the top spellers, but as contenders for best costume as well.  Ultimately, student team All the Buzz beat out the steep competition with the word EUONYMUS and claimed the 2019 championship title.  Organized by Horace Greeley High School’s SHARE (Students Have a Responsibility Everywhere) community service group, more than $20,000 was raised to benefit the Horace Greeley Scholarship Fund which exists to make up “the difference” between the actual costs of college and all other financial resources available to students and their families. In the last 72 years, hundreds of Greeley students have been awarded need-based grants from the Fund helping to make college a reality for all Greeley graduates.