When markets drop, it doesn’t just rattle numbers on a screen. It stirs up real emotions. Anxiety. Doubt. The very natural urge to protect what you’ve worked hard to build.
If you’ve found yourself wondering, “Should I step out and wait until things calm down?”—you’re not alone. That reaction is completely understandable. In fact, it’s one we hear often, especially during periods of market volatility.
But here’s where it gets interesting—and hopeful.
Research from the analysts at City National Rochdale (CNR) shows that some of the biggest market gains come right after the toughest moments. Staying invested during market volatility, even when it feels uncomfortable, can help you avoid missing those critical recovery days.
Let’s look at why staying the course—while not always easy—may be the most powerful decision you can make.
The High Cost of Missing the Market’s Best Days
As the chart below shows, if you remained fully invested in the S&P 500 from January 2003 to March 2025, a $1 million portfolio could have grown to $9.9 million.
But what’s the cost of missing the best days in the market?
- Miss just the 10 best days, and that number drops to $4.6 million
- Miss the 20 best days? It falls to $2.7 million
- Miss the 60 best days, and you’re left with just $600,000
When do those “best days” usually happen? Surprisingly, not during calm periods—but right in the middle of the storm. This is exactly why staying invested during market volatility can make such a powerful difference.
- March 2009, during the depths of the housing crisis, saw some of the strongest single-day gains in over a decade.
- March 2020, just days after COVID triggered the fastest market drop in history, produced record-breaking rebounds.
It’s a pattern we’ve seen time and time again: the best days follow the worst ones. And unless you’re in the market when they happen, it’s nearly impossible to catch them.
Source: CNR, The Impact of Timing on Equity Returns, 2003–2025
The takeaway? Because the best days usually come within days of the worst ones, it’s nearly impossible to exit and re-enter without sacrificing long-term gains.
So… What Do You Do with That Information?
It’s a simple lesson: the best days usually come right after the worst ones. That means the urge to pull back during a downturn can leave you on the sidelines just as the rebound takes off.
We believe the real power lies in staying the course with a plan you trust—one that’s designed to ride out the tough times and keep you aligned with your goals. Why? Because market swings are normal, but making emotional decisions in the middle of them is most often where long-term progress often gets lost.
Let’s Make Sure Your Plan Holds Up—No Matter the Headlines
If you’re feeling uneasy about where things stand, we’re here for that conversation.
We’ll walk through your strategy, show you how it’s designed to work in different market environments, and make sure it still reflects what matters most to you.
Past performance is not a guarantee of future results. The Standard & Poor’s 500 (S&P 500) is a widely recognized, unmanaged index that represents the performance of the general U.S. stock market. It is market capitalization-weighted, meaning each company’s influence on the index is proportional to its market value. Please note that clients cannot invest directly in an index.
Josh Whelan
CFP®, CLU®, ChFC®
Partner, Financial Advisor
About the Author
Josh sees his profession as a calling, not just a career. His motive for pursing financial planning was very personal. While working on a degree in marriage and family counseling, Josh’s father was diagnosed with multiple sclerosis. Josh decided then and there to change career paths to help his family prepare for an uncertain financial future. Financial planning became his path to serving others.
The “Alterra” name was coined by joining the Latin roots “alter”, the origin of the word “altruism” with “terra” meaning earth or land. This name reflects the company philosophy of “clients before profits” and providing firmly grounded advice.
