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Time In > Timing

The amount of time invested is greater than timing an entry

Large moon over spooky cemetery

In a previous post, we claimed it was “tricky” to time the market. It makes sense to reiterate that point.

One of the questions we are often asked is ‘when is the best time to invest money in the market.’ Poor market returns this year has increased the frequency.

For long-term investors, the simple answer is right away. Equity markets do not alert us when they reach a bottom. Unfortunately, there is no checklist that gives a precise signal as to when markets are about to rebound. Bottoms are only identifiable well past the point. Returns are typically strongest during the initial stages of a rebound. Missing just a few days can hinder long-term performance.

This is especially true over multiple cycles, but small periods can make a substantial difference. Strong return days compound over time. Waiting for the perfect moment increases the potential for missing those days.

The amount of time invested provides better results versus timing the market.

We plan to do additional research in this area since it is timely and relevant to our clients. For now, please see the attached article from our partners at eMoney.

2022-10-20 October Crash (Time in vs Timing)
Download PDF • 213KB

This content was created by a third party. All opinions, comments, conclusions are of the author and not Jackson Creek Investment Advisors LLC. The information published herein is provided for informational purposes only and does not constitute an offer of investment advisory services. All information is subject to change without notice. Nothing contained herein constitutes financial, legal, tax, or other advice. These opinions may not fit to your risk and return preferences. Investment recommendations may change, and readers are urged to check with their investment advisors before making any investment decisions. Information provided is obtained from sources believed to be reliable, but we cannot attest to its accuracy. Past performance is not necessarily indicative of future returns. Investment advisory services are offered through Jackson Creek Investment Advisors LLC, a Registered Investment Adviser.



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