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Schwab Research Reveals the Optimal Way to Invest, and It's Not Timing the Market

The article from MSN Money discusses a study by Schwab Asset Management which analyzed the effectiveness of various investment strategies over a 20-year period from 2003 to 2022. The research, titled "The Power of Time: Leveraging the Three Ds of Investing," found that the optimal strategy for investors is not timing the market but rather focusing on time in the market, diversification, and discipline. The study highlighted that investors who stayed invested throughout the period, even during downturns, significantly outperformed those who tried to time the market. Specifically, missing just the 10 best days in the market over this period could reduce total returns by nearly half. The key takeaway is that maintaining a long-term investment approach, diversifying across different asset classes, and adhering to a disciplined investment strategy leads to better financial outcomes than attempting to predict market movements.

Read the Full MSN Article at:
[ https://www.msn.com/en-us/money/top-stocks/schwab-research-reveals-the-optimal-way-to-invest-and-it-s-not-timing-the-market/ar-AA1hkMUp ]