Attempting to time markets involves a twofold decision: not only when to get out of the markets but also when to get back in. Missing only of the few better days can be enormously costly to a portfolio as the graph (Courtesy of Dimensional Fund Advisors) fully illustrates.
Why look to accomplish the virtually impossible when staying disciplined has a huge payoff for long-term, patient investors?
The lesson provided is one for investors to take heed of, particularly in the currently volatile environment.
Note: Dimensional Fund Advisors and Triad Advisors are not affilitated.
The Cost Of Attempting To Time The Market
March 31, 2020