Alright, so a reader drops me an email and basically asks, “Hey, when’s this market gonna hit rock bottom so I know when to jump in?” And I’m like, “Dude, trying to time the market is like me trying to bake a soufflé without a recipe—pretty much doomed from the start.” It’s a bit like trying to tell your school bully that what he really needs is a hug from his dad. Probably won’t go down too well.
When the market finally decides to bottom out, most folks are too panicked to throw their cash in, ’cause it feels like the world’s just gonna keep selling and selling. But, honestly, I get why everyone’s cagey about investing right now. I mean, when the market’s at a high, who wouldn’t be nervous? We all grew up on “Buy low, sell high,” didn’t we?
Reality check, though: ever thought about “Buy high, sell higher”? I know, sounds a bit upside down but hear me out. Sometimes odds are in your favor with that one.
Here’s the kicker: if you’d only invested when the market hit an all-time high, you’d rake in about 2% more over the long haul. Seriously, just at the highs. Wild, right?
There’s this neat chart I saw (don’t ask me where, I just remember it vividly) showing that stocks usually keep climbing after a new peak. Makes sense, since bull markets are like that one uncle at Thanksgiving who just won’t stop talking—they drag on longer than you expect.
Now, I’m not saying dump all your cash in every time the market takes a new selfie at its peak. But don’t shy away just ‘cause prices seem sky-high either.
Investors are, like, their own worst nightmares sometimes. Just last week, I was looking at another chart that said over 30 years, folks only made about 2.5% annually, while the market dished out 11%. All because we’re scaredy-cats. We hesitate when it’s high, wait for a dip, then chicken out when it’s low.
Here’s my two cents: if you’ve got money, invest it. Or just do it regularly, like every month or quarter. Pretend the market’s just a background character in your life’s sitcom. Up, down, sideways—doesn’t matter.
So, long story short, just keep buying the market. Don’t sweat the small stuff. You’ll do just fine over time.
