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The stock market crashes 30%. You've got £10,000 ready to invest. Which strategy gives you the best chance of making the most money if the market eventually recovers?
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Invest all £10,000 immediately
121 votes (20.8%)
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Invest £2,000 every month for five months
215 votes (36.9%)
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Wait until prices stop falling
120 votes (20.6%)
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Wait until the market starts rising again
126 votes (21.6%)
Total votes: 582
Answer: A — with an important qualification.
Historically, investing a lump sum immediately has beaten spreading investments over time more often than not, because markets tend to rise over the long term.
But that doesn’t guarantee the best outcome after a particular crash. If prices continue falling, spreading purchases could work better.