I stumbled across an interesting article recently, about ‘Market Timing’. We can all relate to spending hours on trying to pick the trough or top of a market cycle, or congratulate ourselves on getting in at the bottom and riding a sp to its peak.
This article goes on to explain that Market Timing is perhaps not that important, it all comes down to the individual’s mind-set around wealth.
“You have probably seen this phenomenon: there are successful investors that can make money regardless of the market conditions. They make good money during good times, and they make even better money during bad times.
To these successful investors, there is one thing that is constant: they make money regardless of changes in the market. Market Timing seems to have very little effect on them.
You have probably also seen the opposite phenomenon: there are investors that would lose money even when the market was doing great. These investors lose money during good times, and lose even more money during bad times.
To these unsuccessful investors, there is one thing that is constant: they lose money regardless of changes in the market. Market Timing also seems to have very little effect on them. ”
Hmm, now there’s something to think about. Imagine having the good fortune to enter the market at ANY time and still make money.
The author goes on to get you to think of money as water and it seems that some people have a fixed sized cup to hold money – whenever they get near the cups maximum threshold one of life’s challenges comes along to ensure their cup never overflows.
So what we NEED to do, is to consciously make an effort to increase the size of our cup (the invisible mental capacity for wealth), and then we won’t really need to worry about Market Timing at all!
Sounds like a plan to me – I’ll order a beer stein.