Apr 1, 2009 12:00 PM

(Re) Entering the Market?

The study of behavioral finance tells us that people's fear of financial loss exceeds their desire for gain. This helps explain why most people, given a sum of money to invest, prefer to enter the market in stages rather than all at once.

Based on the historical record, however, investing all at once is the better choice more often than not. The U.S. stock market has gone up more than 70 percent of the time during the last 80 years,1 so the odds are in your favor that the market will outperform cash. By being fully invested from the start, you can enjoy all the potential gains.

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