Bank of AmericaBitcoin PriceCointelegraph.comHODLInvestmentsStocks

Bank of America report extols the virtues of HODLing

New research from the multinational investment bank confirms what many of us knew all along: Investors should never try to time the market.
When it comes to investing in the financial markets, panic selling often leads to missed opportunities – and waiting for the dip could rob you of the most lucrative days to hold a particular asset. Those are the general takeaways of a comprehensive study of the S&P 500 Index conducted by Bank of America. Using data going back to 1930, Bank of America strategists found that a basic hold strategy would have yielded total returns of 17,715%. If, on the other hand, investors tried to time the market, they could have missed out on the best trading days. Missing just ten of the S&P 500’s best trading days each decade would have diluted the total returns to just 28%. For many investors, especially inexperienced ones, the natural impulse is to sell following a major downturn. But Bank of America found that the market’s best days often follow from the worst drops. Panic selling on the way down could lead to investors missing the best days. Trying to time the market has been a futile affair. Chart via CNBCSavita Subramanian, the bank’s head of U.S. equity and quantitative strategy, explained: “Remaining invested during turbulent times can help recover losses following bear markets – it takes about 1,100 trading days on average to recover losses after a bear market.”Cryptocurrency investors, and especially Bitcoin (BTC) holders, are known for having …
Story continues on Cointelegraph

Related posts

The NFT of record: New York Times raises $500,000 for charity in NFT column sale

The NYT goes NFT as tokenized article auctions for over $500,000 “It’s worth a try,” wrote New York Times columnist Kevin Roose of his attempt to auction one of his articles as a non-fungible token (NFT). Just a day later, however,…
Cointelegraph.comIoTeXNFTNon-fungible Tokensproof of presenceTechnology

New tech allows crypto users to mint NFTs with 'proof of presence'

IoTeX’s project uses “verifiable GPS data to mint NFTs that prove you were at a certain place at a certain time,” said Larry Pang. The latest product from IoTeX, a privacy-focused platform for the Internet of Things, reportedly brings the…
Bitcoin PriceCointelegraph.comDerivatives

Bitcoin price falls to $50K, but $6B options expiry can refuel bulls

The largest-ever Bitcoin options expiry of $6 billion nearly doubles the previous record. The biggest-ever Bitcoin options expiry is due on March 26. Over $6 billion worth of Bitcoin (BTC) options will expire across exchanges on Friday, with a majority…