Market Timing Doesn’t Pay
Chart of the Week for October 25-31, 2002
Following two difficult quarters, stocks have swiftly and significantly rebounded so far in October. Strong upward moves frequently take place quickly and without advance warning. Over the eleven trading days since their October 9th lows, the major equity indexes are up about 15%. Such a sudden move underscores the importance of remaining invested in a fully diversified portfolio, and not trying to outguess the market.
* This illustration was compiled by information provided by Baseline, which is a leading provider of information products and services to the investment community, with primary emphasis on the institutional equity market. Baseline is not affiliated with the ICMA-RC ("RC"). The Dow Jones Industrial Average ("DJIA") is a price weighted average of 30 actively traded highly capitalized "Blue Chips" stocks which is prepared and published by Dow Jones & Company. The S&P 500 is market value-weighted index showing the change in the aggregate market of 500 stocks relative its base period and is a widely recognized, unmanaged index of common stock prices. The NASDAQ Composite Index is a market value-weighted index that measures all domestic and non-US based securities listed on the NADAQ Stock Market. You cannot invest directly in these indices; therefore, their performance does not reflect the expenses associated with the active management of a portfolio of open-ended investment company shares. The information and analysis contained herein is presumed to be accurate and is provided "as is," without warranty of any kind, either expressed or implied. ICMA-RC presents this material for educational purposes only and it is not to be construed as investment advice. ICMA-RC shall not have any liability for any loss sustained by anyone who has relied on the information contained in this illustration. Vantagepoint securities are distributed by ICMA-RC Services LLC, a controlled broker dealer affiliate of ICMA-RC, member NASD/SIPC. ICMA-RC Services LLC, 777 North Capitol Street NE, Washington, DC 20002-4240. 1-800-669-7400.