Cum On Feel The Noize (actually don’t!)
Some of us of a more mature vintage may remember this Slade classic from 1973. It was a No1 single for 4 weeks in the UK and reached No 5 in the US.
It might make for a great pop song but is not good advice for anyone looking to maximise their investment returns.
Market noize (sorry noise) is constant. Headlines scream about inflation, elections, changes in party leaders recessions, wars, and market crashes, often pushing investors to make emotional decisions. Yet history repeatedly shows that staying invested is one of the most effective ways to build wealth over the medium to long term.
The biggest mistake many investors make is trying to “time the market.” While it may feel safer to move to cash during volatile periods, missing even a handful of the market’s best days can dramatically reduce long-term returns. Research from Wells Fargo found that the S&P 500 returned an annualized 8.45% over the past 30 years when investors stayed fully invested. However, missing just the 10 best trading days reduced returns to 5.56%, while missing the best 30 days cut returns to only 2.07%. Missing the best 50 days actually resulted in negative annual returns.
What makes market timing even harder is that the best days often occur shortly after the worst ones. During periods of panic, many investors sell, only to miss the recovery that follows. JPMorgan-style analyses have consistently shown that long-term investors who remain disciplined tend to outperform those who react emotionally to short-term volatility.
Successful investing is rarely about predicting the next headline. It is about patience, consistency, and allowing compounding to work over time. Ignoring the noise and staying invested through market cycles has historically rewarded disciplined investors with stronger long-term gains and greater financial security.
If you would like to review your investment positions give us a call or send us an email.
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