We have just experienced the toughest period in the markets for over 40 years. Investors may, in hindsight, argue that they should have changed their allocation to lower risk assets or reduced their exposure significantly to avoid a draw-down. On the other side of the coin, investors with excess cash may be wondering when the best time is to buy stocks at cheaper entry levels. It’s during times such as these that we have to remind investors and clients (and even ourselves) that time in the market is more important than market timing.

Time in the market (often referred to as a long term investment strategy) involves buying securities or investments and staying the path for a long term period. Time in the market from an individual financial and wealth planning perspective means identifying, with your investment consultant or wealth manager, what your specific long term investment goals are, and how best to achieve these within the constraints of how much investment risk you are willing to take (“risk appetite”). Individuals with a higher risk appetite have higher tolerance for volatility (risk) and are able to allocate a greater portion of their portfolio to equities, which over the long term provide a higher investment return.