There is a universally agreed-upon approach, but is it actually correct? Usually, investing in the thing that people have invested in for the last 20 years is a good way to buy at the top.
That’s why that’s not the standard advice. It’s index stocks hedged with bonds. If you manage to buy at the “top” of your entire country’s economy, you’ve got bigger problems at that point.
Buying after any previous crash, instead of before, gave you 10-20 years of extra retirement. If you waited 10 years in cash for a crash before going all-in, you came out ahead.
Does that assume that you're able to perfectly time the investment with the market bottom?
Only within a few months. Buying soon after the crash versus buying soon before the crash.
Those that pick bottom get smelly finger
Yes it tends to be correct because the other option, invent a trading scheme, tends to work out worse for investors who attempt it.
Or we can admit the entire system really sucks.
IIRC, "Buy index funds. The end."
> Usually, investing in the thing that people have invested in for the last 20 years is a good way to buy at the top.