Much has been said about the risks involved with timing the market, and rightfully so. Most investors are terrible at predicting the market, often finding themselves buying high and selling low. During sharp market volatility, it becomes tempting to move to cash or alter your regional allocation to perceived safer markets. However, these moves often end up destroying value.
The problem with market timing
Despite our natural aversion to falling markets, some of the biggest one-day upswings occur during these volatile periods. While dodging the worst days can be beneficial, missing out on these best days can equally be disastrous to your long-term investment goals.
The tables below show how different scenarios would have impacted the growth of R100 over 20 years on the JSE All Share, and the MSCI World, ending January 2025.
Click here to read more: Staying invested matters.pdf
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