Market Timing

"Stocks are so expensive! I can't invest now!" - Everyone

Research shows that the human brain is woefully inadequate at being able to time the market. We have lots of inherit biases that often allow our feelings to make poor decisions. If you are like many investors who are weary of investing in the stock market near all time highs, here are a few things to consider:
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1) In the 12 months following a record high, stocks on average return 10.3% after inflation, compared with 8.6% the rest of the time.
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2) U.S. stocks have been at a record high in 30% of the 1,176 months, going back to 1926.
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3) Furthermore, if you sell stocks at their highs, and put it into cash, over a 10yr period you would lose -23% of your wealth.

Evidence based investing shows that it makes sense to stay invested in the stock market even after reaching all time highs. This is why we don't use a crystal ball in order to try and predict the future. Simply spend less than you make, invest the difference, and watch the gains compound over time.