Does it make sense to invest in down markets? Some people simply quit investing and avoid the market altogether. This may be the wrong decision! Here’s a little exercise might provide a clue as to why most investment experts advise consistent investing.
In our example, the price of our fictitious investment begins and $50 and goes down. In fact, it takes 10 years just to get back to it’s initial price. Did systematic investing seem worthwhile? You be the judge. Continue reading