2017’s global economic outlook is, as we can all see, filled with uncertain events. A few of them are: President Trump abandoning the Trans-Pacific Partnership, the broadly anticipated rate hike by the Fed and Britain’s withdrawal plans from the European Union.
In times like this, it is only human to feel anxiety and fear. But as American businessman and stock investor Peter Lynch says about investing, “Your ultimate success or failure will depend on your ability to ignore the worries of the world long enough to allow your investments to succeed.”
So here’s a tip for you in 2017 – Remember that time is your friend.
A big part of making money grow is to take advantage of time. People in their 20s or 30s might shy away from investing these days, but they are actually the most suited to own riskier investments like stocks.
That’s because young people have lots of time to recover from market setbacks. A ride up is followed by a ride down, and the ride down inevitably is followed by a climb back to high ground. The longer your time horizon, the less market risk is a factor.
Your ultimate success or failure will depend on your ability to ignore the worries of the world long enough to allow your investments to succeed.
So if you’re waiting for significant signs of market stability or for the market to hit low ground before you start investing, that could be very costly. The longer you wait to invest, the more growth you miss.
Instead of trying to time the market, letting your money “spend time” IN the market is the secret sauce that allows your wealth to multiply, due to the long-term effect of compound interest.