Would you like to become a millionaire?
Well, then this is the lesson for you. I’m going to show you how you can time the market to quickly and easily become a millionaire.
First things first. What does it mean to time the market?
Okay, take out a stopwatch and – no, that would be silly. Not that kind of timing. When we say time the market, what we are really saying is move in and out of investments so you can buy when prices are low and sell when prices are high. Instead of taking a patient, long-term approach to investing, you want to quickly make gut reactions based on global economic and geopolitical events with the expectation that you will know the specific time to both buy an investment and also sell the investment.
Here’s how you can become a millionaire with market timing.
Start with a billion dollars and then try to time the market for a few months, and you’ll almost certainly be worth a million by the end of it.
What? Was that sarcasm? Yes, my friends. That was sarcasm.
Timing the market is for chumps. Losers. Billionaires who lost nearly everything and now are millionaires.
But how can it be? It seems so reasonable. Doesn’t it make sense to get in and then out at the right times? Well, sure. If you could actually do it successfully, then it would make sense.
It’s like being asked, “How can you win an Olympic Gold Medal?” That’s easy. Just run the 100 meters in about 9 seconds.
Yeah, no kidding. But it’s easier said than done.
Same is true for timing the market.
Don’t get conned into the false belief that there is some investing guru who has a secret formula or algorithm for market timing. More money is lost on timing the market than gained.
Here are a few quotes on the matter from highly respected investors:
“A decade of results throws cold water on the notion that strategists exhibit any special ability to time the markets.” — The Wall Street Journal
“Far more money has been lost by investors preparing for corrections, or trying to anticipate corrections, than has been lost in corrections themselves.” — Peter Lynch
“Become a millionaire by first starting with a billion dollars and then trying to time the market.” – Robert Pagliarini
And while this next guy is no Robert Pagliarini, he’s got a pretty good track record.
“The only value of stock forecasters is to make fortunetellers look good.” — Warren E. Buffett
The saying is, “It’s not about timing the market, but time in the market.” That makes all the difference.
But since you can’t make money consistently from timing the market, is all lost? Should we forget about this whole investing thing altogether?
The proceeding blog post is an excerpt from Get Money Smart: Simple Lessons to Kickstart Your Financial Confidence & Grow Your Wealth, available now on Amazon.
About the Independent Financial Advisor
Robert Pagliarini, PhD, CFP®, EA has helped clients across the United States manage, grow, and preserve their wealth for the past 25 years. His goal is to provide comprehensive financial, investment, and tax advice in a way that was honest and ethical. In addition, he is a CFP® Board Ambassador, one of only 50 in the country, and a real fiduciary. In his spare time, he writes personal finance books, finance articles for Forbes and develops email and video financial courses to help educate others. With decades of experience as a financial advisor, the media often calls on him for his expertise. Contact Robert today to learn more about his financial planning services.