When Should You Get In The Market?

At a workshop last spring, I met a man who believed we were at the top of a market cycle and was scared to invest his money.

His thought process went something like this: we’re at the top, the only way to go from the top is down, therefore I will stay in cash and wait until a better time to get in.

Earlier in my career in the industry, in late 2009, I would speak with clients who had just gone through the crash and were scared to get in the market again.

Their thought process went something like this: the market just crashed, it could crash more and I’ve lost a lot, therefore I will wait until the market rebounds some more before I invest.

In either case, fear ruled the person’s decision. One was scared to invest at the perceived top, and the other was scared to invest while near the perceived bottom.

So, when should you get in the market? Trying to time the market is nearly impossible, and trying to time it in a way to capitalize off of it is even more difficult.

The big secret of investing is that it is ridiculously easy. Really, it is. As I’ve shared in previous posts, academic research has been done already to show how to build a portfolio and also how to maintain it for a lifetime. The returns on an optimized portfolio are more than enough for anyone to live on well into retirement.

The best time to be in the market is now. The best time to optimize your portfolio is right now. Why? Because 20 or 30 years of having an optimized portfolio is better than 19 or 29 years.

It is not about trying to time when to get in the market. It is about how much time you have IN the market.

Has your experience as an investor been one that could be described as intentional, patient, deliberate, and disciplined? Or, has your experience been one that could be described as reactionary, shooting in the dark, hodge-podge, and sporadic?

I help people discover their personal risk tolerance and then we build an optimized portfolio for them. Then, I help them stay disciplined the rest of their life so they can stay on track to capture the market’s returns. This enables them to live out their hopes and dreams for their future.

If you want to have this experience as an investor - one with peace of mind, knowing you’re in the best position possible - come to my next workshop. Or, you can contact me through this website. I look forward to hearing from you soon!