We're told investing is the shit due to compound interest. This would be why time in the market >> timing the market.
However, when I buy an ETF of the S&P500, I am buying a basket of stocks. The value of 1 ETF share moves up and down depending on the value of that basket of stocks. If I buy and hold, what compounding is there? There's no compounding... the only thing that comes close is if you reinvest the dividends.
So, would it be true, then, that timing the market >> time in the market when you buy and hold?
If so, what does one do to actually get some compounding going??
someone ELI5 pls.
Submitted September 11, 2017 at 11:13AM by zyotre http://ift.tt/2xZSknO
