I’ll Wait to Invest When the Stock Market Pulls Back…Why?
Manage episode 420547510 series 3571300
Timing the stock market is something we’re all told not to do, yet all of us are guilty of it at some point. This episode may have the “smoking gun” illustration to help you avoid this poor decision going forward.
Jeff Harrell explains two hypothetical (and impossible) scenarios of the luckiest and unluckiest investors in history—the former buying into the stock market at the very bottom every year and the latter buying in at the very top. How wide do you think the gap is between their portfolio values after a 35-year time horizon?
He adds a third (and more realistic) scenario of an investor dollar cost averaging into the market monthly, instead of annually, and compares their portfolio to those of the world’s luckiest and unluckiest investors.
Don’t answer the following question until you’ve heard this episode: “Is now a good time to invest in the stock market?”
(Season 1 Episode 7)
Resource Mentioned in Episode:
- Data illustration of hypothetical stock market timing scenarios - see episode Show Notes on our website
Other Episodes Referenced:
Podcast produced by Ted Cragg of QuickEditPodcasts.com
Music Credit: Dream Cave / Adventure Awaits / courtesy of www.epidemicsound.com
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