4 ms·

With investing you can always wait an year or two with the cash and think about it. However if you end up doing nothing with the money for 10 years, you will lo

With investing you can always wait an year or two with the cash and think about it. However if you end up doing nothing with the money for 10 years, you will lose some serious purchasing power. I would just put first everything to an index fund, then from there on try to find more interesting investing opportunities.

chii 6y ago
“Far more money has been lost by investors preparing for corrections, or trying to anticipate corrections, than has been lost in corrections themselves.” — Peter Lynch
- dragonwriter 6y ago
  That's the wrong comparison. The right comparison is to what would have been lost in corrections but for the preparations. I mean, if you have x losses in preparation to achieve y losses in actual corrections, when you would otherwise have z losses in corrections for z > x+y, that's a win.
  - refurb 6y ago
    Of course, but for z > x + y to be true you'd have be amazing at timing the market (or just very lucky), which very few people are.
- justinmeiners 6y ago
  Any evidence to back up the quote?
  - dap 6y ago
    I don’t know the original context, but I take a quote like that to be a reminder that there’s cost to preparation and you could go overboard.
  - refurb 6y ago
    Scroll down to the table.[1] [1]https://www.fool.com/investing/2019/04/11/what-happens-when-you-miss-the-best-days-in-the-st.aspx https://www.fool.com/investing/2019/04/11/what-happens-when-... Basically, between 1998 and 2018, if you were out of the market during the best 10 days, you cut your return in half. And the more days out, the worse it gets. Of course, this is artificial in the sense that you'd be pulling out one day, then back in 2 days later and doing it again and again, but the point stands, you can miss a week in the market and it can have a huge impact on returns.

4 ms·

With investing you can always wait an year or two with the cash and think about it. However if you end up doing nothing with the money for 10 years, you will lo

by spottybanana 6y ago

chii 6y ago
“Far more money has been lost by investors preparing for corrections, or trying to anticipate corrections, than has been lost in corrections themselves.” — Peter Lynch
- dragonwriter 6y ago
  That's the wrong comparison. The right comparison is to what would have been lost in corrections but for the preparations. I mean, if you have x losses in preparation to achieve y losses in actual corrections, when you would otherwise have z losses in corrections for z > x+y, that's a win.
  - refurb 6y ago
    Of course, but for z > x + y to be true you'd have be amazing at timing the market (or just very lucky), which very few people are.
- justinmeiners 6y ago
  Any evidence to back up the quote?
  - dap 6y ago
    I don’t know the original context, but I take a quote like that to be a reminder that there’s cost to preparation and you could go overboard.
  - refurb 6y ago
    Scroll down to the table.[1] [1]https://www.fool.com/investing/2019/04/11/what-happens-when-you-miss-the-best-days-in-the-st.aspx https://www.fool.com/investing/2019/04/11/what-happens-when-... Basically, between 1998 and 2018, if you were out of the market during the best 10 days, you cut your return in half. And the more days out, the worse it gets. Of course, this is artificial in the sense that you'd be pulling out one day, then back in 2 days later and doing it again and again, but the point stands, you can miss a week in the market and it can have a huge impact on returns.