Our chart of the week looks at long-term investment returns for staying fully invested vs selling at each 5% S&P 500 pullback and buying at the next high. The S&P 500 is currently in a 5% drawdown, driven in part by geopolitical conflict in the Middle East and rising oil prices. The chart shows a significant gap in performance between these two approaches. Investors who attempt market timing often miss the sharp rebounds that tend to occur during volatile periods. Missing these rallies disrupts compounding in a meaningful way, as a $1,000 investment in 1990 that repeatedly sold after 5% pullbacks and waited for new highs would have grown to only $3,393. In contrast, a $1,000 investment that remained fully invested through market swings would have grown to $18,767. The takeaway demonstrates how long-term success often favors those who stay the course rather than react to frequent market volatility.