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And those people are the reason everyone else says not to do that, not to time the market, and to invest for the long term. If you stick to an established plan,
by waterphone 8y ago
And those people are the reason everyone else says not to do that, not to time the market, and to invest for the long term. If you stick to an established plan, adjust your allocation according to that plan, and don't panic sell, historically you will have always come out ahead.
http://awealthofcommonsense.com/2014/02/worlds-worst-market-timer/ http://awealthofcommonsense.com/2014/02/worlds-worst-market-...
- joejerryronnie 8y agoCorrect, but I think this is easier said than done sometimes - especially if you've only been investing during a huge bull market. As Mike Tyson once said, "Everybody has a plan until they get punched in the face."
- waterphone 8y agoAll the more reason to constantly tell people the right thing to do and why and strategies to avoid letting fear and other emotions get the better of them in those situations. We can all be susceptible to such things, but with a little education and discipline can avoid making terrible mistakes like that.
- Aeolun 8y agoNot really, regardless of the state of the market, you are probably better off keeping your stock than selling it.
- vldx 8y agoThis seems true, however the following quote is worth mentioning: “The market can remain irrational longer than you can remain solvent.” https://quoteinvestigator.com/2011/08/09/remain-solvent/ https://quoteinvestigator.com/2011/08/09/remain-solvent/
- loeg 8y agoThe important thing the linked article shows is that even if you're always investing right before crashes the market still trends upwards and you still come out ahead — as long as you don't panic sell.
- Scea91 8y agoOf course, there is a difference of how much ahead. If you would have invested few months later you could have come much more ahead.