Sunday, December 23, 2012

The Odds of Timing the Stock Market

 The financial media has a habit of commenting on timing the securities markets. It cannot stop for a good reason. Securities-timing articles fill space in blogs, books and publications, over the air, and the internet.

Yet, independent research constantly shows that market timing never works consistently.One example:  Mutual fund management companies know that in-and-out investors never do as well as their buy-and-hold, long-term statistics show.

Reading a financial article telling how a rally trend in one security class may be finished, and it may be time to get into another type, should be a danger signal, not a buy opportunity. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole tweets.)

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