Part 5/7:
The narrative takes an interesting twist as it reflects on the common belief that one can "sell high and buy low." Market timing often appears as an alluring strategy, yet its practical execution proves disastrous for many. The article highlights stories of two investors:
Steady Sarah, who adopts a buy-and-hold strategy.
Timing Tom, who tries to react and predict market movements.
Over two decades, Sarah usually outperforms Tom, not because she possesses superior knowledge, but simply due to her unwavering investment approach. Tom's attempts to dodge downturns cost him dearly; he often misses the prompt recovery that follows market crashes—but only if he was still invested.