Podcasts Business Thoughts On Money [TOM] Timing Isn't Everything

Timing Isn't Everything

Published: Sept. 16, 2022, 2:35 p.m.

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What\\u2019s For Dinner?\\nOk, let me set the scene\\u2026

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Your spouse, your significant other, your friend, your sibling, or someone close to you says, \\u201cLet\\u2019s go out to dinner tonight! Your choice, just say where\\u2026\\u201d

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For the next few minutes, you list off ideas one by one, and your counterpart shuts down each of them. Sometimes with a \\u201cNah,\\u201d sometimes just a look of disgust, and sometimes with a \\u201cDidn\\u2019t we just go there?\\u201d Until you finally feel defeated and surrender with the response, \\u201cWhere do you want to go?\\u201d

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In these situations \\u2013 which I am sure some of us are very familiar with \\u2013 we learn that an introductory promise of \\u201cyour choice\\u201d really isn\\u2019t the case.

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Oh, I Would Never\\u2026\\nIn personal finance, I often experience a similar head fake. A client or potential client will introduce a conversation by telling me how foolish it would be to try and time the market, how market timing is an impossible endeavor \\u2013 as I am shaking my head saying, \\u201cYes, yes, that\\u2019s correct\\u201d \\u2013 and then they proceed to tell me their plan. What\\u2019s their plan? To take a stab at some variation of market timing.

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It sounds like this: \\u201cI know market timing is a fool\\u2019s errand, and I know it\\u2019s impossible to know the future, but here\\u2019s what I\\u2019m thinking\\u2026 There is so much unknown out there right now, I think I\\u2019ll wait until markets settle a bit\\u201d or \\u201cI\\u2019ll invest after markets pull back a bit\\u201d or \\u201cUntil this geopolitical unrest is settled\\u201d or \\u201cUntil this jobs report is published\\u201d or \\u201cUntil this election is over.\\u201d

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How am I to respond? They know I don\\u2019t put any faith in being able to successfully time markets. Think about it, if I was a successful \\u201ctimer\\u201d once, God knows I couldn\\u2019t do it again (be consistent), and if I could, I sure wouldn\\u2019t let anyone in on my secret. I\\u2019d just sail off into the sunset with my billion-dollar timing skills.

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Links mentioned in this episode:

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