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Waiting for the Dust to Settle

"Should I simply get out of the market and wait for the dust to settle?" This is a question that many investors have asked themselves so far in 2022.  They may even have acted on it.   While getting out of the market may feel satisfying for a short period of time; historically speaking, it has been a bad way to manage your investments during downturns. In this brief whitepaper, Dimensional Fund Advisors looks at various market timing strategies vs. simply staying invested in a portfolio of US Stocks.  In all cases, "waiting on the dust to settle" after a temporary decline in US stock prices has left investors worse off than simply staying in their seat. Winston Churchill said "Democracy is the worst form of government...except for all of the others".  Similarly, buy and hold can certainly seem like the worst investment strategy.  But, it seems to beat all of the others as well.