Why it makes sense to time the market for certain ETFs
There are two popular adages in investing / trading: "Time in the market is better than timing the market" and a related one: "If you have a sum of money to invest now, lump sum is better than dollar-cost averaging (DCA)" In many articles you will find online , the second statement is usually backed by studies showing that lump sum outperforms DCA roughly two-thirds of the time, even by the well-reputed investment firm Vanguard . However, I am here to make a contrary statement - I have found that for certain ETFs, it actually makes more sense to time the market , and NOT DCA or lump sum! Gasp! How can it be true?? Heresy! Lies! Yes, go ahead, quote me. "It makes sense to time the market (Teo, 2021)" I want to point out that 'time in the market is better than timing the market' is premised on a very important assumption - that markets go up over time. Hence, it makes sense to get your investment in early and get it to work, rather than trying to wa...