We often hearsay that the market is volatile. Yes, the market can fluctuate. Ideally, we buy low sell high, reaping the maximum profit, but it takes skills and experience to time the market. What if you are not a good market timer?
All is not lost for you who wants to grow their wealth. If we do a linear regression of indices such as STI or S&P 500, the regression line is a positive upward slope. Therefore, in the long run, this represents an upward trend, probably due to economic expansion.
If we stay long enough in the market, we would still be able to feel and see the power of compounded growth. Time in the market is underrated, but in fact this is the key determinant on your wealth accumulation.
Let me share with you on a concept that can help you harness the overall growth of the market, and yet contain the fluctuation risk.