Do You Have to Be Lucky to Get Investing Right?

Investors need not be superstitious. In fact, some research suggests that Friday the 13th has actually been a pretty lucky day for the U.S. stock market.

The evidence isn’t foolproof, but you could certainly make an argument that it’s been a good day to be invested, historically speaking. One analysis cited last year by MarketWatch found that the S&P 500 Index performed an average of four times better when the 13th of the month landed on a Friday.

But does it even matter? Whether or not you believe Wall Street could be cursed today, should you change your strategy?

If nothing else, examining how our fears impact our behavior is a good reminder that a short-term (or impulsive) investing strategy can make it tricky to build wealth. Investing for the long-term often means staying the course. Even with all its ups and downs, the S&P 500 — the broadest U.S. stock benchmark — has averaged an annual return of about 10% (6%-7% if you adjust for inflation) over time.

So what? Stick to your plan when it comes to your long-term financial goals. If you’ve got money in stocks, keep your cool during market swings and think twice before panic selling or buying. You don’t have to be lucky to get your money right.

Related Reading

The Friday the 13th Effect: Superstitions in Behavioural Finance (LGT Wealth Management)

Avoid Bad Financial Luck This Friday the 13th With These 4 Tips (Financial Industry Regulatory Authority)

What You Need to Know When the Market Is Down (SoFi)

photocredit: iStock/Dragon Claws

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