Key insights
- An individual's experience highlights the risks of market timing and the opportunity cost of holding cash during periods of inflation and market appreciation. The reluctance to invest due to fear of further market declines has resulted in missed gains. This sentiment, if widespread, could indicate some sidelined cash ready to enter the market on any pullback, but the overall impact is slightly negative due to the erosion of purchasing power.
I am in my late 30s, and I thought about investing in early 2020 by putting in a very small amount. Then COVID happened and the market crashed. I thought the market would fall further, so I waited but then it suddenly rose. I kept waiting for it to fall again, but it continued rising.
The same thing happened in 2022. In March 2026, I thought the war would cause the market to fall further, but to my surprise, it increased.
I feel embarrassed about my mistake and my lack of knowledge at this age. I am sitting on cash while inflation is eroding its value, and I feel clueless about how to begin. I feel like the opportunity is gone forever now that the market is so high.
I tracked the market all through March 2026 but kept waiting for it to fall further and didn’t invest a penny. I feel foolish for my age, as I have spent hours tracking the market over the past six years but have invested only $1,000.