Wealth Management

Voted #6 on Top 100 Family Business influencer on Wealth, Legacy, Finance and Investments: Jacoline Loewen LinkedIn Profile

August 31, 2019

Cash out of the market now?

Timing the market seems like a good idea but is difficult to execute. I have a close friend who was one of the few people in my network to successfully predict 2008–2009.
However, even during March 2009, the lows for markets at 7.300, he wanted to wait until `further falls`.
Then markets hit 10,000 in 2010. He thought it was a dead cat bounce.
By 2013 or so, he was even more worried. Markets were at 14,000. Record highs! Higher than during 2007–2008.
Surely this was a bubble! Then 16,000, then 18,000. But now Trump was running for election.
Then Trump won!
Surely, now markets would fall incredibly? Then markets hit new highs.
When markets fell 20% or so in December, he finally bought in, but suddenly the reality downed on him.
He got in at 21,000–22,000, a discount of 20%+ compared to where prices were a few months previously, and yes he has made 20%+ in the space of 6 months or so.
Yet he realized something. `I should just have invested from day 1`. He missed out on all those gains, and dividends.
People forget that point as well. Even stagnant markets, give dividends.