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8 Timing the market Although financial markets can be remarkably steady over long periods, sharp, short-term movements in security prices are increasingly frequent. When you witness the market making big point swings, it can be awfully tempting to try "timing" the market—attempting to buy or sell based on the direction the market may be headed. Choosing the ideal moment to buy or sell is difficult, and, as you can see below, investors who attempt to time the market may end up missing periods of exceptional returns. While volatility can provide the opportunity to buy stocks and mutual funds at attractive prices, market timing can seriously diminish long-term performance. Past performance is no guarantee of future results. The investment return and principal value of an investment will fluctuate. Two potential keys to success: Patience and Commitment Annualized S&P 500 index returns (January 2005 through December 2024) 1. Using the S&P 500 as a proxy for the domestic equity market, and looking at a 20-year investment period, we see that: • If an investor missed just the 10 best days during this 20-year period, 41% of the gains would be lost. • If they missed the 20 best days, 66% of the gains would be gone. • Missing the 30 best days would result in an almost 87% loss. • Missing the best 40 days would actually result in a negative return over the 20-year period. Sources: FactSet, Annualized S&P 500 index returns from January 2005 through December 2024. For illustrative purposes only. Calculation is based on 5,217 days, excluding weekends and holidays. The returns are based on the S&P 500 index, a market-weighted index of 500 of the largest U.S. stocks in a variety of industry sectors. It is not possible to invest directly in an unmanaged index. Index returns do not reflect any management fees, transaction costs, or expenses. Equity securities are more volatile than bonds and subject to greater risks. Small and mid-sized company stocks involve greater risks than those customarily associated with larger companies. This material is provided for educational purposes only and should not be construed as investment advice or an offer or solicitation to buy or sell securities. Opinions expressed are current opinions as of the date appearing in this material only. Past performance is no guarantee of future results. The investment return and principal will fluctuate. -.% .% .% .% .% .% .% Invested all , days Minus best days Minus best days Minus best days Minus best days .% .% .% .% -.%

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