Are you still concerned about timing? Wondering where you should put money when the market crashes? Let’s examine a case study of Unlucky Louie, whose investment timing is never right.
Every year since 1997, Louie has invested $10,000 in the stock market. Unfortunately, Louie always invested on the day the stock market reached its peak for that year.
The good news is that Louie’s terrible timing didn’t hurt his long-term financial plans. While his outcome trailed that of an investor who invested on the best day of each year, his investment more than doubled in value, even accounting for the historic market declines that marked the period, as shown below:
