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It is because if you can't time the market you don't know whether you are in a slump or in a rally. If you stretch your investment in time you partially avoid a
by _nalply 7y ago
It is because if you can't time the market you don't know whether you are in a slump or in a rally. If you stretch your investment in time you partially avoid a possible crash after a rally when you got in just before the crash.
- Huggernaut 7y agoOn the order of 25+ years I don't see why this would make much of a difference. See Bob, the world's worst market timer: https://awealthofcommonsense.com/2014/02/worlds-worst-market-timer/ https://awealthofcommonsense.com/2014/02/worlds-worst-market...
- eb0la 7y agoI really enjoy your point :-) but I see things differently. I think stretching your investment means you learn about how markets and investment really works because you will make a lot of mistakes during a period of time. Rushing into market means you will make less mistakes, but bigger ones.
- deleted 7y ago[deleted]
- Huggernaut 7y agoI like this observation that you can take time to ease into it. A lot of the risks of investing passively are really on the individual and the right mental approach is extremely important too.