One of our members sent me this article by Charles Schwab, “Does Market Timing Work?“.

They studied the difference between trying to time your investments versus just staying fully invested. Their conclusion probably won’t surprise any listeners to our show: 

Our research shows that the cost of waiting for the perfect moment to invest typically exceeds the benefit of even perfect timing. And because timing the market perfectly is nearly impossible, the best strategy for most of us is not to try to market-time at all. Instead, make a plan and invest as soon as possible.

Even if you are clever or lucky enough to be “Peter Perfect, a perfect market timer“, this made a “relatively small difference” compared to “Ashley Action” who just invested her money as soon as she had it. 

And, of course, most of us aren’t as clever or as lucky as Peter. 

Which is why we try to stay fully invested