Member-only story
If You Want Wealth Stop Playing Safe
Fear Is a Buy Signal Not a Warning
Investing consistently no matter what happens sounds responsible. Elegant. Almost stoic. It’s what all the indexing gurus tell you: “Do DCA and forget about the market.” But if your goal isn’t to feel good but to get rich, you need to look at the data with less faith and more cold logic.
Let’s cut to the chase: DCA is like wearing a seatbelt… in a Formula 1 race. It protects you from emotional mistakes, yes, but it also keeps you from hitting the gas when it’s time to accelerate.
The difference between a wealthy portfolio and a mediocre one isn’t how much you invest each month, it’s when you’re willing to invest aggressively while everyone else is running away.
Over the last 50 years, the S&P 500 has offered brutally profitable opportunities… but only to those who dared to buy when fear was at its peak.
Let’s look at the numbers:
- If you had invested €100,000 in the S&P 500 in March 2009 (the bottom of the Great Recession), by 2020 you’d have over €400,000. In contrast, if you DCA’d over those 11 years, you’d have ended up with just €250,000.
- In March 2020, when the market collapsed 34% in three weeks, contrarians who bought aggressively doubled their investment in under 18…