Time in the market vs timing the market

In one of our earlier stories - 'The power of compounding', we showed how time is the most crucial element in compounding. In this story, we want to take that thought and apply it in the context of timing the market. There are way too many variables that determine the movement of stocks over a short-time period (a day, a week, a few months or even a year). Figuring out what these variables are and what their interplay will be is outside the realm of possibilities of nearly everyone. So why is it that people are so keen to find out when to purchase rather than what to purchase? What is the need for this speculative behaviour? If you are

This article was originally published on January 11, 2022.