Why Time in the Market Is More Important than Trying to Time the Market

With the JSE All Share reaching 60 127 this morning (29/08/2018), it is valuable to revisit some basic principles that make for successful long-term investment strategies.

Indeed, it is easy to forget that in April this year the JSE All Share dropped to 54 602 (4/4/2018).  This fact highlights the inherent futility of trying to time the market.

I have mentioned this in previous articles “Staying Invested Vs Timing Markets”. In short, it is always better to stick to well thought out investment strategies and to avoid emotional reactions to negative market movements.

The graph below is a powerful illustration of why time in the market is more important than trying to time the market! (click on the graph to enlarge)