October Investment Insights (10-06-15)
Market Myth Busters: “You Can’t Time the Market”
We are not sure what market prognosticators mean by this phrase. Do they mean you cannot predict market movement (we agree)? Do they mean you cannot get every twist and turn of the market right all the time (we also agree)? However we fear they mean investors should buy and hold investments and take what the market gives them.
We certainly disagree.
Would you keep driving down a sharp, winding road at the same speed you travel a flat, straight highway? Imagine the speed getting faster, the turns tighter, eventually you want to hit the brakes.
While no two winding roads are the same, none of the patterns in the market are consistent either, which could lead you to believe that “timing” the market is impossible. However, rigorous testing over multiple decades of market data shows following the long-term trends in the market not only provides competitive returns, but also reduces the “sharp turns” in your portfolio.
-Ed & Josh
Remember, investment success is a process, not an outcome!
For more information about our unique approach to investing, please visit our Investments Page, and remember that we are always here to answer any questions you have about how to ensure the best future for your money.