I’ve posted Column Entry #4 to my new weekly Beyond Buy-and-Hold column at the Out of Your Rut site. It’s called Long-Term Timing Is Not At All Similar to Short-Term Timing.
Juicy Excerpt: Stock prices reached insanely high levels in January 1996. What happened if you missed that exit point? You got another change in 1997. And then another in 1998. And then another in 1999, 2000, 2001, 2002, 2003, 2004, 2005, 2006, 2007, and 2008. It wasn’t hard to pick a good spot to get out.
And what will happen if you miss the good entry point that will be coming after the next price crash? You may have as long as 10 years to buy into stocks at a good price. That’s what happened after the crash we saw in the early 1970s. Stocks remained a good buy from 1975 all the way through 1995. You had 20 years to find a good time to get back in.