Time in the market always beat investors timing the market, argues many great investors. Many investors make the mistake of thinking that they can successfully time the market. They believe that they can successfully predict when to “sell high” and to “buy low”. But in reality, no one has ever been able to accurately and consistently predict the market’s highs and lows. And I repeat, no one.
Fidelity’s investment guru Peter Lynch strongly discouraged investors trying to time the market, emphasizing that most investors lose more money anticipating downturns than in the downturns themselves. He believed market timing was impossible to get right and that staying invested is a better long-term strategy.
Further, Lynch said, “If timing the market is such a great strategy, why haven’t we seen the names of any market timers at the top of the Forbes list of richest Americans?”
Bull markets make you money; Bear markets make you wealthy. It’s essential to invest aggressively during market downturns. Yes, it’s difficult to buy stocks consistently when market sentiment is the most fearful and while stock prices are falling during Bear markets. But for smart investors, this is when the most money will be made for patient investors over the long term.