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Study: Patient Investing Outperforms Market Timing Attempts Over the Long Term

  • Schwab study found investing immediately earned 92% as much as perfect market timing over 20 years.
  • Monthly dollar-cost averaging also performed well compared to poor timing.
  • Buying only Treasuries was the worst performing strategy.
  • Market timing is difficult and risks of mistiming are high.
  • For long-term goals, patient buy-and-hold may be optimal over timing attempts.
yahoo.com
Relevant topic timeline:
The author expresses confusion and skepticism about the multitude of factors that investors consider when trying to predict stock market movements, emphasizing the importance of simplicity and sticking to a consistent process. They provide their own analysis and parameters for the market in the coming weeks.
The article discusses the uncertain market forecast and suggests that now is a good time to buy stocks.
Summary: Timing the market is futile in the volatile cryptocurrency market, with the monthly returns of Bitcoin and Ethereum being almost indistinguishable between bullish and bearish markets, suggesting that consistent investing strategies like dollar cost averaging are more effective.