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Liz Ann Sonders
Many investors are doing the wrong thing, shortening their time horizons, trading faster. Commission costs are low, and you can make a trade with the press of a button.
But the more volatility increases, the more investors should lengthen their time horizon. A study by Dalbar found over the 20 years that ended in 2006, the annualized return for the S&P was 12%, while people who tried to time the market lost 2%.
NEXT: Susan Byrne
Last updated April 28 2008: 1:20 PM ET
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