If you're a new investor (with less than $10k), and have your account at a discount broker, you can add a minimum of 1% per year in fees just for the privilege of having an account. That brings the total up to 4% in annual expenses. Talk about adding insult to injury.
If you somehow missed the best 30 months, your $10 would only be $154. However, if you managed to miss the 30 worst months, your $10 would be $1,317,803! Thus, my point: Missing the worst periods has profound impact on long-run compounding. There are times when you end up better off by being out of the market.
Interestingly enough, if you missed the 30 best months and the 30 worst months, your $10 would still be worth $18,558, which is 80% higher than the buy-and-hold strategy. This all comes about because stock prices generally go down faster than they go up.
Think about it this way: if you hire a real estate investment agent that talks down about a property or location instead of highlighting its potential or good points, how quickly do you think it's going to sell? So, make sure your agent is positive and has your best interests in mind. Also, don't be afraid to bargain, negotiate or try to make deals with your real estate investment agent because you never know what someone will accept. It's always better to try than to always wonder how much you could have saved.