During periods of extreme market declines, a natural emotional reaction can be to “take control” by selling out of the market and seeking safety in cash. This is due to “loss aversion” – or the fact that losses hurt more than gains feel good. The results of this action can be devastating because during periods of market volatility, the best days are likely to occur close to the worst days. This chart compares an individual who was fully invested for the past 20 years in the S&P 500 to investors who missed some of the best days as a result of being out of the market for a period of time. Missing the top 10 best days reduced the annualized return by almost 50%; missing the top 40 days resulted in a negative annualized return on the original $10,000 investment. Staying the course with a diversified long-term investment strategy may produce a better retirement outcome.