As with any swift market crash, many investors immediately start guessing or estimating when the market will bottom.
There is almost a rabid obsession with doing so, as if being right will earn the prognosticator a medal and high honours.
The reality is that no one can predictably time the market’s bottom. Anyone claiming to be able to do so is either overconfident or plain lying.
A spark of good news
From my experience going through the Great Recession back during 2008-2009, most investors will not be able to recognise the bottom even if it was staring them in the face.
As sentiment remains poor and bad news abounds, investors are now conditioned for share prices to continue heading lower.
Any spark of good news, or rather, news is that less bad, may trigger a sustained market recovery.
Buying great companies at fair prices
At the Smart Investor, we do not believe in trying to time the bottom.
Our job is to purchase great companies at prices that we deem fair and will provide us with a satisfactory return over the long-term.
Get Smart: No need for perfect timing
So, dear investor, it’s good to remember this — there is no need for perfect timing or to buy at the market’s bottom.
As Warren Buffett quipped back in October 2008 — if you wait for the robins, spring will be over.
Keep your focus on the business performance of your underlying investments, and continue to pace your purchases.
Your patience will be well-rewarded in the years to come.
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