The market hasn't been performing too hot lately. Should you care? As I read posts of personal finance bloggers liquidating accounts and encouraging readers to get out and wait until they feel confident in the market again, I see people falling into the single biggest trap in investing: trying to time the market.
For the most part, the personal finance community agrees that the most important decision you make with your portfolio is strategically choosing your asset allocation and sticking with...
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market timing
What active investors really do and what it costs them
A couple inherited $20,000 in 1985. The husband and his wife decided that they would put their windfall into mutual funds. They decided that they would split the money and each put $10,000 in their own account. They both selected the same stock mutual fund and put their money in on the first business day in January, 1986. (more…)
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