We know that market move in cycles and in upwards trend in the long run, for the past 200 years. If you stretch the investment time horizon to a much longer period, you will see that every crisis was just a "
blip" in time.
Every crisis, be it caused by war, oil crisis, financial (sub-prime) or even current crisis of COVID 19 will pass eventually. Some companies may collapse during the crisis (even a 100 years old company), therefore it is important to have a diversified portfolio with fundamentally strong companies.
Three Most Important Charts On Investing
As I blogged before
"Are Stock Returns Normally Distributed?"
We know that stock market returns are not perfectly in "
normal distribution " but skewed towards
+ve returns in the long run.
Time In the Market vs Timing The Market
Of course, if one can really "
time the market" well and sell in early 2020 and buy back eventually after 23 March when the market hit bottom, the return will be exceptionally good....
