Why You Shouldn’t Try to Time a Stock Market Bottom

When the stock market crashes it impacts people in different ways. Nobody likes seeing their net worth drop — even if it’s just on paper — and it’s very tempting to want to stop the bleeding and sell your holdings.

That’s an understandable impulse. When you see your stocks lose value, it’s easy to think about selling them simply to stop the bleeding. You can’t lose any more money if you sell, but that’s a very risky attitude.

Nobody knows when the market will reach bottom and the bottom may not happen at the same time for every sector. If you own stocks you believe in over the long-term, selling now so you can buy at a lower price later puts you at risk of selling, then having to pay a higher price to buy back in.


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