Smart investors use volatile markets to upgrade their portfolios. A common mistake investors make during market downturns is that they look backward, not forward. Investors fixate on lost profits, on what they should have done. This takes their eyes off what they should be doing to make money going forward.
You cannot undo the past. Smart investors don’t miss the future by looking at the past. They take their lumps, learn their lessons, and do what they can to position their portfolios for the market’s inevitable reversal. That means smart investors use volatile markets to trim their exposure and adjust accordingly.
That’s the beauty of the market: at every ups and downs, there’s the probability to profit.
Bottom line: Nobody can tell you with certainty the perfect time to invest. Nobody knows with certainty when a market has bottomed. What I do believe can be said with a high degree of certainty is that markets move through peaks and troughs. I can’t guarantee prices will be higher five or ten years from now, but history shows that a consistent investment program produces success over the long term.
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