Yes, but a good number of individual investors will pour money into the markets only when things get super frothy and exciting (i.e. at the peak) and then freak out and pull all their money out of the markets when we see a huge downturn.
And those people are the reason everyone else says not to do that, not to time the market, and to invest for the long term. If you stick to an established plan, adjust your allocation according to that plan, and don't panic sell, historically you will have always come out ahead.
The important thing the linked article shows is that even if you're always investing right before crashes the market still trends upwards and you still come out ahead — as long as you don't panic sell.
Correct, but I think this is easier said than done sometimes - especially if you've only been investing during a huge bull market. As Mike Tyson once said, "Everybody has a plan until they get punched in the face."
All the more reason to constantly tell people the right thing to do and why and strategies to avoid letting fear and other emotions get the better of them in those situations. We can all be susceptible to such things, but with a little education and discipline can avoid making terrible mistakes like that.
