http://createwealth8888.blogspot.com/2009/10/compound-magic-of-stock-transaction.html
I believe many investors love the
Rule Of 72 and start thinking how long would it take to double their investing capital?
Take a good look at STI main data point since 1990. We have to be realistic and mindful that the Rule of 72 can only work well in a prolong Bull market or unless Investors turn into Speculators and start shorting the market on the way down.
For the Rule of 72 to really work in our favor, we may have to time the market; and have to be good at market timing to avoid those market crashes or major corrections. It just takes 1 or 2 bad years to wipe off much of the past gains if our portfolio is caught by market crashes or major corrections.
So do you think that market timing is important for Rule Of 72 to work for you?
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