Time in Market versus Timing the Market
December 23rd, 2023 (10 months ago) • 1 minute
Invest $10,000 30 years ago and you have ~$160,000 today. Try to time the market and miss the top 10 return days, that number drops to $72,000. You lose more than half your returns if you miss out on 10 days in 10 years. Why try and find the needle in the haystack when you can just by the whole haystack?
Recently, the market had been performing exceptionally well, with a climb of over 10% in November 2023 alone.
At that point in time, I had some cash on hand and was thinking of investing in it. However, I was worried that the market was overvalued and that I should wait for a correction before investing. The correction never came and the market continued to climb and climb.
I missed out on this opportunity because I was trying to time the market. A lesson learned in hindsight.