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Schwab Research Reveals the Optimal Way to Invest, and It's Not Timing the Market


Published on 2024-12-15 08:01:14 - MSN
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  • Can investors realistically time the market to maximize returns, especially over the long term? According to a recent study from Charles Schwab, perfect market timing is practically impossible. The firm's research showed that most investors are better off investing as soon as possible using a buy-and-hold strategy rather than trying to predict short-term peaks and

The article from MSN Money discusses a study by Schwab Asset Management which analyzed the effectiveness of various investment strategies over a 20-year period from 2003 to 2022. The research, titled "The Power of Time: Leveraging the Three Ds of Investing," found that the optimal strategy for investors is not timing the market but rather focusing on time in the market, diversification, and discipline. The study highlighted that investors who stayed invested throughout the period, even during downturns, significantly outperformed those who tried to time the market. Specifically, missing just the 10 best days in the market over this period could reduce total returns by nearly half. The key takeaway is that maintaining a long-term investment approach, diversifying across different asset classes, and adhering to a disciplined investment strategy leads to better financial outcomes than attempting to predict market movements.

Read the Full MSN Article at:
[ https://www.msn.com/en-us/money/top-stocks/schwab-research-reveals-the-optimal-way-to-invest-and-it-s-not-timing-the-market/ar-AA1hkMUp ]