"Timing" the market can be more important than "time in" the market

Investopoly · May 31, 2022 · 16m

Most people are familiar with the saying that “time in the market is more important than timing the market”. 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.Most markets move in cyclesMost people understand that markets move in cycles. To generalise, an asset class can be over-valued (particularly during a boom cycle), under-valued (after a bust cycle) or fairly valued.If you had have invested in the US tech index (NASDAQ) in November 2021 you would have lost about 30% to…