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I mean, if you read Random Walk on Wall Street, you'd think that a smart investor wouldn't try to time the market. I don't have the stat in front of me, but it
by gdubs 9y ago
I mean, if you read Random Walk on Wall Street, you'd think that a smart investor wouldn't try to time the market.
I don't have the stat in front of me, but it's often repeated that all of the biggest gains in the market over the past several decades have occurred on just a handful of days. If you missed those days, you missed those gains.
That is to say that if you try and outsmart the market, the odds are pretty stacked against you that you'll not buy back in at the right time (or you could be wrong about the timing of the correction in the first place.)
This isn't investment advice – usual disclaimer, etc. But, I'd definitely skim through Random Walk if you have a chance.