If you are about to invest a lump sum of cash, what’s your worst fear?
From my experience talking with clients and prospects, the worst fear is “what if I’m investing at the market peak and the market falls off a cliff right after I make my investment”.
The below article tells a fictional story of Bob, ‘the world’s worst market timer’ who invested his savings in the S&P 500 just before each of the market crashes in 2007, 2000, 1987 and 1973. You will be surprised by his investing outcome.
WHAT IF YOU ONLY INVESTED IN MARKET PEAKS
Here are some of the key lessons if you don’t get to read the full story:
- Consistently save and invest a portion of your income.
- Time is your friend when it comes to harnessing the power of compound interest. The earlier you start, the better the outcome.
- Adopt an optimistic and long term mindset. Odds are in your favour.
- How you react in a market downturn will determine your ultimate investing success.
- The above require no special skills in picking stocks or managed funds or any other complex investment strategy.