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Don’t Make Me Say I Told You So 181

These figures don’t take reinvested dividends into account,
which would make the difference between Scenario A and

Scenario B even bigger.

For the part of your portfolio where you may not be investing
money on a regular basis, the dividends that you reinvest in your
stock or mutual fund holdings will have this same multiplier

effect over time. This means that you will have more shares and

more money at the end of your accumulation phase. Though
it may seem counterintuitive, the more bear markets you go
through during the accumulation phase of your investing life,

the more money you will probably have.

Summary

► Trying to time the market or the economy is impossible
and unnecessary.

► Fear and greed are the primary motivators for people
who try to time the market.

► Come up with an investment plan and stick with it. Do
not be pressured into changing your plan because of a
fear of market declines.

Chapter 4: The Most Common Investor Mistakes