Wealth Decisions by Brian

Wealth Decision #7- Don't Try To Time The Market


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Peter Lynch once said, “Far more money has been lost by investors trying to anticipate corrections than lost in the corrections themselves.” “The idea that a bell rings to signal when to get into or out of the stock market is simply not credible. Though tempting, trying to time the market is a loser's game.

The old adage, “It's not about timing the market, but about time in the market,” has been proven true over the years. Research shows that those who stay invested over the long run in a well-diversified portfolio will generally do better than those who try to profit from turning points in the market.

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Brian D Muller(AAMS©), Founder, Wealth Advisor


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Takeaways:

  • Investing is not about timing the market, but rather about having time in the market.
  • Historical data reveals that many of the best market days occur during periods of downturn.
  • Emotional decision-making can lead to suboptimal investment outcomes, particularly during market declines.
  • Diversification across various asset classes can mitigate risk and enhance long-term investment success.
  • Regular investments, such as dollar-cost averaging, can be more beneficial than attempting to time market fluctuations.
  • A well-structured financial plan should precede the construction of an investment portfolio tailored to individual goals.

Companies mentioned in this episode:

  • Hartford Mutual Funds
  • Fidelity Magellan
  • Charles Schwab
  • S&P 500
  • Longboard Asset Management
  • Russell 3000
  • Momentous Wealth Advisors

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Wealth Decisions by BrianBy Brian D Muller (AAMS©) (BFA™)