I’m reminded of a quote from the wonderful Wayne Gretzky, “You miss 100% of the pictures that you really do not just take.” And that is genuine for the markets as very well. The magic of compounding Greg talked about: You have to be in the marketplace to have the magic of compounding. Returns are quite punchy in the marketplace. There are up times that are unpredictable, 2% right here, 1½%, three% there, and then it stops. And you can’t hold out and guess when that will take place. And at the outset I told you that you can’t also guess where by valuations are large. You can’t think that it won’t take place in the upcoming. And so what we say is you ought to get invested. Get in the markets. Commence participating.
Now you may possibly be not comfortable undertaking it in a lump sum, so what we would advise is to feather it in above time. Do what is termed dollar-price averaging. Consider 6 months and put that money to function for you above the class of people 6 months. You really do not have to do it all at 1 time for the worry that tomorrow is the day the marketplace goes down. But really do not sit on it for far too prolonged due to the fact no 1 understood the marketplace was heading to just take off right after March, and Greg and I can’t notify you what is heading to take place in 2021.
But what we can notify you is that if you’re not invested, you won’t get any beneficial return.
All investing is subject matter to risk, which include the doable reduction of the money you devote.
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