Submitted by HopefulInformation t3_z6nisc in personalfinance
KoastPhire t1_iy2c9y1 wrote
Without reading the article I think they're saying something like this:
If you invested $100 and it dropped 10% it becomes $90 and if next year it went up 10%, you'll be at $99. Some people would say that is a wash in percentage growth but overall you're down $1.
Timing the market never works so your second best option is to be consistent and invest over time.
HopefulInformation OP t1_iy2dlym wrote
Got it. Thank you!
Link to article: https://www.investopedia.com/articles/06/compoundingdarkside.asp
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