The unluckiest market timer made a lump sum S&P 500 index fund purchase on a high day, only to see the market drop 20% soon after. Despite the unpleasant experience, historical data shows that intra-year drawdowns are common, but the market usually recovers, as seen in the recent record highs. JPMorgan observed that despite average intra-year drops of 14.1%, annual returns were positive in 34 of 45 years.

The stock market surged to a new record high in June, recovering quickly from the April lows. It took just over four months for the market to return to all-time highs, highlighting the resilience of the market. The key takeaway is that time is the unlucky market timer’s best friend, as investing at all-time highs has historically generated positive returns over various time horizons.

Recent economic data points to a mixed picture, with new unemployment claims decreasing, wage growth cooling, and inflation expectations moderating. An overview of consumer spending, small business optimism, and mortgage rates provides insights into the current economic landscape. Despite potential risks like tariffs and geopolitical events, the long-term outlook for earnings growth and positive demand remains favorable.

Investors should focus on the long-term and not be swayed by short-term market volatility. While challenges like economic recessions and bear markets are normal, staying invested and thinking long-term can help weather the ups and downs of the market. The key is to remain patient and trust in the long-term resilience of the economy and the markets.

Read more at Yahoo Finance: Why you don’t have to be a good market timer to be a successful investor