One of the most important points you might miss is – when you try to avoid the worst days of the market, you also end up avoiding the best days of the stock market.

Between October 2008 and November 2008, there were 6 days (out of 20) of the worst returns of the last 20 years.

Guess how many days with the best returns in those same 2 months?

You probably guessed it right. The Answer is 6.

Something similar is true for the worst days and best days during COVID-19. The best days have happened in the same week as the worst days sometimes with a gap of a couple of days.

If this is the nature of the stock markets, how on earth can you actually time the markets even if anyone had godly powers?

How would it be possible to get into the stock market on a certain day and then get out after a few days/weeks and then again get in?

Do you think it’s possible?

It’s absolutely not and anyone who tells you that he/she can do this is simply a bullshitter. Yes, you can rebalance a portfolio and sell high and buy low (by sticking to an asset allocation) but there is simply no way to accomplish the feat of market timing.

The truth is that there is simply too much noise during such turbulent times.

And many end up exiting the market thinking they will get back in later. Many who even have money to invest wait for the market to settle. They wait for the Right Time when the Right Time is Right in front of them.

To avoid the worst days, people end up missing the best days too.

Being out of the stock market or waiting for the stock market to settle during tough times is like waiting for the rainy season to end before you step out of the house. All you need instead is an umbrella.