Are You Right for the Wrong Reasons?

If you're right just by luck, then your being right is not repeatable. Perfect jerry would be up 50%. He doesn't exist. And if you have timed the market perfectly and you want to tell me about it, i don't care. You should have bought a billion dollar lottery ticket instead.

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Episode notes

What do timing the market and a circle have in common? There’s no point, literally and figuratively. Some people would like to have you think they’ve cracked the code and there’s some secret formula. There’s not. They may have been able to “time the market” once or twice, but they probably can’t repeat it multiple times. Being correct for the wrong reasons isn’t repeatable, and with the market being so arbitrary, timing it correctly for the right reasons is unlikely. Despite this, there’s still a way to have enormous success while realizing great returns in the stock market, and today’s guest, Jesse Cramer, explains that.

In Jesse’s article, The Near-Zero Benefit from Timing the Market, he tells the story of three investors. All three investors have different experiences “timing” the market, and while they all have different outcomes, it’s not the outcome you’d expect. While you can’t time the market, time in the market can be just as lucrative. If you let your money compound interest over time, you’d be surprised at how much more you can earn by simply leaving your money alone.

In This Episode We Cover

Time in the market vs. timing of the market and which one wins over decades

The unpredictability of the market and how to combat it

Advice for new investors on how to manage emotions while investing

The benefits of reinvesting your dividends and letting your investments compound

The importance of self-education and how to use it as insurance when investing

The history of the stock market and its overall growth

And So Much More!

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