When people say time in the market is more important than timing the market, how much time are they referring to?

I'd like to start investing but am unsure if prices are cheap now, or whether to wait further if prices are indeed cheap now, or simply go in regardless of the price hoping to gain profit and dividends in the long run

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Andrew Fong

13 Nov 2018

Associate Partner at St. James's Place Wealth Management

It’s only natural to be concerned about short-term fluctuations in stock markets. The only certainty is that it is impossible to be sure how the markets will move.

The sharpest falls and the largest gains are often concentrated into short periods of time. If you try to time the market to avoid the falls, you’re highly likely to miss the gains.

We agree that time in the market is the most important factor & from our research, we find that you should be invested for at least 10 years to ride out all the turbulence in the markets.

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Casey Choo

08 Oct 2018

There's a couple of factors you'd have to take into considerations regarding "time in the market". The simplest rules I'd tend to fall back upon is

1) How much am I willing to put in for my first investment? More than what I'm comfortable with? Or less?

2) You'd probably have to do some basic research on the investment types you're thinking of buying. Say for example, its P/L expectations

3) Never go in regardless!! Always make sure you do your research or ask around before you make your first purchase!

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