With the TSX index continuing to rise in recent weeks, only a select few market timers who remain out of the market are in positive territory. Looking at past prices, we can find the day during the stock market downswing that had the same price level as today. I call this the “market timer breakeven date.”
The following chart shows what I mean:
As prices continue to rise, this date travels further back in time. Apart from a few bumps in the TSX chart, the breakeven date is now back to October 6. Not too many market timers who jumped out of stocks during the downturn managed to do it before this date.
Curiously, a few people I know who jumped out of stocks seem quite unconcerned by all this. They are content to wait until “things calm down,” but fail to see the fact that they sold low and are waiting to buy high.