{"id":16289,"date":"2022-05-31T11:00:26","date_gmt":"2022-05-31T01:00:26","guid":{"rendered":"https:\/\/www.prosolution.com.au\/?p=16289"},"modified":"2022-05-31T11:14:52","modified_gmt":"2022-05-31T01:14:52","slug":"investment-timing","status":"publish","type":"post","link":"https:\/\/wealthcoach.com.au\/stage\/investment-timing\/","title":{"rendered":"“Timing” the market can be more important than “time in” the market"},"content":{"rendered":"\n
\"investment<\/figure>\n\n\n\n

Most people are familiar with the saying that \u201ctime in the market is more important than timing the market\u201d. It is very true that holding a quality investment for many decades will mask imperfect timing. However, for some asset classes\/investments, timing can be very important.<\/p>\n\n\n\n

Most markets move in cycles<\/h3>\n\n\n\n

Most people understand that markets move in cycles<\/a>. To generalise, an asset class can be over-valued (particularly during a boom cycle), under-valued (after a bust cycle) or fairly valued.<\/p>\n\n\n\n

If you had have invested in the US tech index (NASDAQ) in November 2021 you would have lost about 30% to date. This is a lesson in poor timing. $100 invested would now be worth $70. An investor needs a 43% return just to get back to $100 again (breakeven). It\u2019s worth noting that every fundamental indicator highlighted that the NASDAQ has been overvalued for some time. Of course, a bull market can last a lot longer than anyone can anticipate which invites people to ignore these fundamental indicators.<\/p>\n\n\n\n