Fisher: Time IN The Market Matters More Than Timing The Market

Fisher: Time IN The Market Matters More Than Timing The Market

With the market in official bear territory, many investors are deeply worried about where the market will go in the near future as well as in the long-term. In a video posted on the Fisher Investments YouTube channel, Ken Fisher posits that most people are not experts at timing exactly when the market will dip or rise. For those of us that aren’t, “time in the market is more important than timing the market,” Fisher says.

Long-term average returns of the market are actually quite good—around 10%—and include every bear market, every dip and downturn. Therefore, Fisher says, what’s important is staying in the market, much more so than being a genius at timing or even buying the best stocks. While that “stick-to-it-ness” can be difficult to maintain during turbulent times, when many investors bail out,  Fisher encourages investors to reflect on the fact that there has been much worse turbulence in the past, and the market has always rebounded following the turmoil.

Those that stayed in the market during those times have been rewarded for their endurance, Fisher maintains. Almost certainly, looking out to the next 5, 10, 15 or even 20 years, the market processes will continue to prevail. For those investors who have intermediate or longer-term needs, the level of returns that equity brings can’t really be found in anything else that’s liquid. Therefore, it’s important not to let the current volatility—which is likely short-term—frighten you out of the market when a great reward could be just beyond this horizon.