Broker Check

Why "Time In" Is More Important Than "Timing" the Market

| July 24, 2019

Despite evidence to the contrary, many people believe that investment success is dependent upon their ability to outguess the markets—entering and exiting at the most opportune times. However, history paints a different picture. Investing is a long-term process that has historically paid the greatest rewards to those adhering to a consistent and disciplined approach to investing.

Investors tend to sell after experiencing a paper loss and don’t begin investing again until after the markets have recovered their value. The result of this behavior is that investors participate in the downside of the market and are out of the market during its subsequent rise.

For investors pursuing long-term goals, a well-diversified portfolio with investments allocated across different asset classes can help reduce the risk of a downturn in any one investment or asset class. That can potentially help you stay on track toward your goals while continuing to benefit from the power of compounded earnings over time as you remain invested through different market cycles.

If you have questions about your current portfolio, please give our office a call at (810) 471-3732.