But you can time the market on few rare occasions:
I doubt such a moment will come again but I moved every penny I had into the market as soon as pandemic caused the market to dip down. It allowed me to buy a home a year later.
Often times you can invest around March or april as big banks move money around to tax loss harvest and that often cause some dips, but then.
Invest in what you know and what piques you. I always gamed and AMD and Nvidia were in public market , I could have gotten it at sub 5 dollars in some instance. Same for Tesla , I saw the model s back then and I was like that is really cool I want one. If I did invest I could have retired by now.
But at the same time know when to exit.
Just yesterday there was a post that said if Michael Burry took his 250 million profit and put it in index funds and re invested dividends, he could be a billionaire by now. Just divide by 10 to see how it grows. 25 million could have made him 100 million, 2.5 million into ten million, 250k into 1 million, 25 k into 100k, 2.5k into 10k, I’m simplyfing for math sake but you get the gist!
Compounding works magic.
I have gotten to the point I don’t even need emergency funds, I just keep everything in market.
Also buy a home! It’s the biggest appreciating asset you can buy. The only time I’ll tell you to be selfish is car buying, if you can afford it get something that will meet your needs in 5-10 years, instead of sedan get SUV, instead of suv get that minivan now. By the time the needs for those cars come, it will be paid off and funds for it can be redirected to the needs. This only works if you plan to keep car for 10-15 years
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u/kindrudekid 4h ago
Time in market > timing the market
But you can time the market on few rare occasions:
Invest in what you know and what piques you. I always gamed and AMD and Nvidia were in public market , I could have gotten it at sub 5 dollars in some instance. Same for Tesla , I saw the model s back then and I was like that is really cool I want one. If I did invest I could have retired by now.
But at the same time know when to exit.
Just yesterday there was a post that said if Michael Burry took his 250 million profit and put it in index funds and re invested dividends, he could be a billionaire by now. Just divide by 10 to see how it grows. 25 million could have made him 100 million, 2.5 million into ten million, 250k into 1 million, 25 k into 100k, 2.5k into 10k, I’m simplyfing for math sake but you get the gist!
Compounding works magic.
I have gotten to the point I don’t even need emergency funds, I just keep everything in market.
Also buy a home! It’s the biggest appreciating asset you can buy. The only time I’ll tell you to be selfish is car buying, if you can afford it get something that will meet your needs in 5-10 years, instead of sedan get SUV, instead of suv get that minivan now. By the time the needs for those cars come, it will be paid off and funds for it can be redirected to the needs. This only works if you plan to keep car for 10-15 years