Time in the Market is more Important than Market Timing

The Dow Jones Industrial index goes back to 1885 but is not the most fashionable these days. Its oldest constituents are GE (added in 1907), Exxon (1928) and Procter & Gamble (1932). Its most recent are Goldman Sachs, Nike and Visa (all 2013), Apple (2015) and DowDuPont (2017). Yet, it does not include any of the leading internet companies driving today’s digital transformation, like Alphabet or Amazon, for the simple reason that their share prices are too high and their addition would distort this rather old school priceweighted index. Nonetheless, this exclusive historic club, where inclusion is at the discretion of the editors of The Wall Street Journal does still offer an important lesson in
market timing.

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