Saturday, April 27, 2013

Timing Securities Buying and Selling?

             
Selling securities at their high and buying at their low are everyone’s investment goals. Of the over 1,600 strategies I’ve evaluated along with their pros and cons, this could be one of the basics.
           
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. 

So forget about any supposed ability to time the markets. (See the Earl J. Weinreb NewsHole® comments and @BusinesNewshole at Twitter.)

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