Webcast excerpt: When is the right time to start investing?

Elvera Bartels

Transcript

I’m reminded of a quote from the excellent Wayne Gretzky, “You skip a hundred% of the pictures that you do not get.” And that is legitimate for the marketplaces as properly. The magic of compounding Greg talked about: You have to be in the market to have the magic of compounding. Returns are extremely punchy in the market. There are up days that are unpredictable, two% below, 1½%, 3% there, and then it stops. And you just can’t hold out and guess when that will materialize. And at the outset I told you that you just can’t also guess where by valuations are large. You just can’t assume that it won’t materialize in the foreseeable future. And so what we say is you should really get invested. Get in the marketplaces. Start off participating.

Now you could be awkward doing it in a lump sum, so what we would suggest is to feather it in about time. Do what’s named greenback-cost averaging. Get 6 months and place that money to get the job done for you about the course of all those 6 months. You do not have to do it all at 1 time for the fear that tomorrow is the working day the market goes down. But do not sit on it for too long because no 1 understood the market was heading to get off just after March, and Greg and I just can’t tell you what’s heading to materialize in 2021.

But what we can tell you is that if you’re not invested, you won’t get any favourable return.

Critical details

All investing is topic to risk, which includes the possible loss of the money you invest.

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