Be careful of pundits who claim how well they have beaten the averages by trying to time and then trade the market. Chances are they have not been as successful as they say.
Apart from not providing accurate comparisons (whether dividends are or aren’t included in the figures compared) they invariably forget to tell you of tax bites of their short=term trades. Most folks have most of their investments in taxable accounts, so any short-term profits are severely reduced by IRS rules.
And remember, studies show that timing the markets is a fools’ game even among the supposed experts. ( See the Earl J. Weinreb NewsHole® comments.)
No comments:
Post a Comment