It’s an investor’s dream and the financial media’s constant theme: Selling securities at their high and buying at their lows.
Of the over 1,600 strategies I evaluated along with their pros and cons, this could be basic.
The problem: The idea does not work in practice. Blame it on human psychology. Or the blur of constant financial news with new buying and selling suggestions. Or your need for occasional cash for urgent needs.
Research shows that very few professionals can time the market, except by accident.
Be especially careful with bonds because you are bound to get wrong information from “experts” about the risk of holding them during inflationary times. Investors generally get poor advice about the practical usage of duration principles, as a tool for bond profits during inflationary periods. (See the Earl J Weinreb NewsHole® comments.)
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