The Belief of Market Timing Strategists The Best Investment

The Benefits of Patience

Imagine for a moment that you are a spectator at the race between the tortoise and the hare and that you have placed a wager on the tortoise. As the gun sounds, the hare quickly sprints into the distance, while the tortoise is just beginning its first lumbering step. The tortoise - like steady growth stocks - is competitive in the long run, but there are times when the hare will run far, far ahead, and may even hold that lead for a long time. It is at these times you must remain patient. Eventually, the hare will run out of steam - or even begin running back toward the starting line. In recent memory, we have experienced two major hare reversals - first with technology stocks in the early 2000s and then with financial stocks in 2008. In the future, we will certainly experience other such occurrences. If you focus on the steady growth stocks, you can win the long-term race and avoid much of the volatility and gut-wrenching emotion that sabotage the rabbit riders.