April 07, 2026
The Hidden Cost of Waiting for a Better Entry Point
One of the most common mistakes some investors make isn't picking the wrong investment—it's waiting for a better time to invest. With geopolitical uncertainty, oil prices, volatility, and a new Fed chair potentially coming in later this year, there's no doubt there's a lot to worry about right now in markets. This video explores why time in the market is more important than timing the market.
Many times investors who have cash to invest decide to hold off because they feel uncertain about markets and they want to wait for the market to potentially pull back. While this can feel like a prudent, disciplined approach, in reality it's often just an attempt to time the market.
Trying to Time the Market Can Be Tempting
Because markets have gone down in the past and will go down again in the future, media headlines can reinforce the fear that investors are already feeling. And when you do wind up seeing volatility in markets, it can make it feel even more rational to hold off on making an investment in the market.
But the problem is that there is no all-clear sign for when it's time to get back in. You never know when the volatility will abate, and when the market will start to recover.
The Real Cost of Being Out of the Market and Staying in Cash
Stock market returns can be very strong over very short stretches of time, and the strongest returns often come right after declines. Here are two recent examples:
When the tariffs were announced in 2025, the markets pulled back nearly 20%. They then snapped back and recovered over the next three or four weeks, resulting in big returns over short stretches of time.
During the COVID drawdown back in 2020, the market pulled back 40-50% over the course of February and March. However, the market more than recovered by the time the vaccine news was certain. If you got out of the market, or were holding off to invest until you saw concrete evidence that COVID would be behind us, you were already too late.
Waiting to invest creates a second problem, in that you have to decide when you will pull the trigger and actually get back in. Sitting in cash is not a neutral decision. Over the long run, stocks and bonds are expected to significantly outperform sitting in cash.
Conclusion
Successful investors accept that they aren't able to time the market perfectly—they don't wait for clarity. They follow a plan, and they stick to it. The biggest risk isn't investing at the wrong time; it's never getting invested at all.
If you have questions on anything covered in this video, please don't hesitate to reach out to your advisor.
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