<prompt> Human: I have some extra cash that Ive been thinking about investing in my 401k, about 2,000. With the overall economy the way it is i.e. not great and so much uncertainty across the country and globe, is it really a great idea for me to invest now, or should I wait until the overall outlook is better. I know the markets are doing well, but I dont trust that in this economy. I know everyone says dont try to time the market, but, mathematically, would it be better to invest now and ride out any potential crash, or would I make more money by holding off and investing after a dip? How would it be worse for me to invest when the dow is at, say 14,000 in a year or two, versus 15,500 now? Or does it have something to do with compound interest? Can anyone enlighten me?Assistant: I know everyone says dont try to time the market, but, mathematically, would it be better to invest now and ride out any potential crash, or would I make more money by holding off and investing after a dip?You would make more money by holding off and investing after a dip. Unfortunately you have no way of knowing the difference between a dip and the beginning of a prolonged market slide, and you also dont know when the dip is over. You should not try to time the market given your like everyone elses lack of ability to accurately predict the future.Also, unless the money you want to invest in your 401k is already in the account in a money market fund or something you wont be able to invest it in your 401k. 401ks are funded through payroll deductions and occasionally by rollovers.Human: Its currently all in a 401k actually, just with 15 in a money market cash account. I changed the allocation after hearing a guy in finance mention that he is 100 cash right now as he is expecting a major market correction and I freaked out a little bit. Im realized now that I never should have taken anyones advice as gold, so now I am doing my research and am hoping to allocate optimally. Do you think holding cash at all is a good idea, or should I just go ahead and invest it? Im 27.Assistant: Holding cash in an investment account out of fear of a correction is stupid. Time in the market is more important than timing the market.Human: Is this because of compounding interest outpacing minor dips, or more because no one can tell whether the market is at a ceiling or a floor?  <response>: Its because staying out may help you avoid the worst days, but odds are youll be avoiding the best days as well. The long-term trend of the market has been up. If you are a long-term investor, short-term swings should not matter to you. 