Here’s a demonstration of why it’s impossible to time the market.
With prices at historic highs, both buyers and sellers are wondering when to make a move. Whenever I talk with someone who’s on the fence like this, I always bring up a point from a mentor of mine: It’s impossible to time the market. I have an exercise that demonstrates this idea:
I draw a line on the board and have Kylie say “stop” when she thinks it’s at its peak. As you can see, at 1:20 in the video above, she stops near the top, but the market kept rising. If she was a seller here, she’s missed out on a lot of appreciation.
At 2:04, she stopped at the top of a crest, but the market came back much higher than where she called. This resembles what it looked like when COVID hit: It looked like the peak of the market, but after a small slowdown, it sped up rapidly.
The whole point is that it’s nearly impossible to time the market. Instead, you should pay attention to your life circumstances and see if it’s the best time for you to buy or sell.
If you have any questions about the process or you’re wondering whether or not it’s the right time for you, feel free to give me a call. I look forward to hearing from you.