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Inflection points aren't timing, you recognize them after the fact. Literally when was the last time the market changed direction and what did it do for 3 years
by manigandham 7y ago
Inflection points aren't timing, you recognize them after the fact. Literally when was the last time the market changed direction and what did it do for 3 years after.
It doesn't matter if it goes down again, once you invest you stay invested. The rule was a simple guide on when to get in. Or you can just stay out forever.
- JumpCrisscross 7y ago> Inflection points aren't timing, you recognize them after the fact “Timing the market” means incorporating timing and/or peak-to-trough measures in investment decisions. When you’re not asking “which assets should I buy” and instead “when should I buy them,” you’re trying to time the market. Research is pretty consistent in showing almost all timing strategies are inferior to consistent investment, e.g. investing $X per month, regardless of your views on where the market is relative to what you believe to be an inflection point.
- manigandham 7y agoObviously, if you're investing consistently then this thread doesn't apply. I don't know how to make it any clearer - some people will always have a reason to stay out and I offered a rule to follow to get in. That's all it was.
- koonsolo 7y agoThat sounds smart, but the numbers say otherwise. "Invest it all now" is the best strategy. In your case, you just lost 3 years of nice recovery percentages.
- manigandham 7y agoThe suggestion is for people who don't invest because of whatever reason they come up with to stay out.