Study compared five investors who all implemented very different investment strategies, to see how just investment strategy alone impacted their total wealth over a 20 year time period. Unsurprisingly, the market timer who was able to perfectly, but unrealistically, time the market every year for 20 years ended up with the most wealth accumulated. But what is more surprising and important to note is that perfectly timing the market didn't win by that much. Even if you were someone who invested your money each year at the worst possible time, every year straight while, your investment still grew substantially over the period.
IN THIS EPISODE, YOU’LL LEARN:
00:54 - Why selling during a market downturn can be a very costly mistake for investors.
02:28 - What typically happens to stock returns after a market crash.
05:34 - What the research says about market timing, and why it is not an effective strategy.
13:54 - What the research says about dollar cost averaging and lump-sum investing.
And much, much more!
*Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences.
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