LANSING, Mich. (WLNS) – Timing your investment is an important concept all investors should know, but what does it mean? Local Money expert Stephen Schiestel explains.
“We need to give our investments the time to grow at the rates of return that the markets will deliver,” said Schiestel. “We know that there are going to be up days and down days, up weeks and down weeks. Up years and down years, and we’ve experienced this since the beginning of the pandemic where we saw the stock market drop 30% and then recover very quickly to finish off 2020.”
One example of this extreme volatility would be the crypto market, where drastic highs lead to drastic crashes.
Extreme volatility is why investors need to have the mental freedom to live with volatility, said Schiestel.
“What we know from history is that there are very very few investors who can do this consistently on a long-term basis,” said Schiestel.
The key to investing is to not try and time the market.
Schiestel explained that timing the market is nearly impossible for the average investor, and that its best to spend time in the market as-is rather than try to control it.