should you time the market?I guess my question is should I time the market. Wait until the NAV is more than I payed going in.
also, you're focused on the NAV which is the price but you should focus on total return instead.Market timing refers to act(s) of investing based on the condition of the market as opposed to personal characteristics. Investopedia defines market timing as:
1. The act of attempting to predict the future direction of the market, typically through the use of technical indicators or economic data.
2. The practice of switching among mutual fund asset classes in an attempt to profit from the changes in their market outlook. Some investors, especially academics, believe it is impossible to time the market. Other investors, notably active traders, believe strongly in market timing. Thus, whether market timing is possible is really a matter of opinion. What we can say with certainty is that it's very difficult to be successful at market timing continuously over the long-run. For the average investor who doesn't have the time (or desire) to watch the market on a daily basis, there are good reasons to avoid market timing and focus on investing for the long-run.
— Investopedia
https://www.bogleheads.org/wiki/Market_timing
also, the NAV of a fund declines when a dividend is paid. So focusing on the price is not the right metric. Read more here:
https://www.investopedia.com/ask/answer ... -funds.asp
Statistics: Posted by arcticpineapplecorp. — Wed Jul 03, 2024 9:12 am — Replies 17 — Views 981