Timing The Market Is A Terrible Idea – Here's Why…

Without realizing it, you’re trying to time the market, and losing.

Afraid to invest because you think the markets are going down?

You’re subconsciously trying to time the market.

Here’s why that’s a terrible idea (backed by evidence):

This bar chart shows the results of investing $2,000/yr over the last 20 years.

As you’d expect, investors with perfect timing each year had the greatest returns.

Whereas people holding cash had the lowest.

However, it’s the middle section of the chart that I find interesting.

If you invest on the first of each year for 20 years, you’d only perform marginally worse than the investor with perfect timing.

Specifically, you’d only have $12,645 in fewer returns.

But let’s say you got unlucky every single year when investing $2,000.

You’d only be $32,264 behind the investor with perfect timing.

Which over the span of 20 years isn’t bad.

Besides, you’re almost certainly not going to buy the lowest point each year for 20 years.

So don’t worry if the market is going to crash or not.

With the right time horizon, it’s numerically insignificant.

Based on this chart, the only way to lose is if you don’t invest whatsoever.

Cash in the bank is losing value each year.

So there’s no reason to be scared.

Just invest and enjoy life.

**

Hey there!

Welcome to the WOLF Financial Newsletter.

Join over 13,000 savvy investors building wealth and mastering advanced investing strategies live on Twitter Spaces. Subscribe below to be part of the action:

Subscribe

WOLF Financial has driven liquidity, user growth, and brand awareness across TradFi and Crypto through marketing, advisory, and partnership services. See more Here.

Looking to take your investing game to the next level?

Download the Blossom investing app to converse with 100k+ investors.

Plus, you’ll get a peak at my investment portfolio.

It’s free — give it a try: https://www.blossomsocial.com/wolffinancial