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Timing the market and other bits and pieces

Timing the market and other bits and pieces

When is the time to invest? When will the next crash come? Stocks are too expensive nowadays because we had a big runup the last few years so investing right now is way too risky.

These are statements and questions you will always hear whenever there is a bull market. Many people think they know how to time the market. They think that certain stocks or indices are overpriced and try to hoard cash to buy if there is a crash. However, if somebody would be able to time the market, he could make a limitless amount of money. There is a saying “Time in the market beats timing the market”. As no investor can time the market accurately that makes sense. If you stay out of the market you also lose out on potential gains. To be fair you also eliminate the chance to make loses on your account, however, in a bull market the indices go up most of the time.

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