Friday , 19 July 2024

Trying to Time the Market Is a Fool’s Errand – Here’s Proof (+2K Views)

Pullbacks happen, and usually the market recovers, so trying to time them is probably a fool’s errand – and a money loser.

The above comments, and those below, have been edited for the sake of clarity and brevity to provide a fast and easy read and have been excerpted from an article* from originally entitled Trying to time the market can be dangerous ‏ and can be read in its unabridged format HERE.

According to Bank of America Merrill Lynch’s Savita Subramanian, trying to play the timing game is walking a razor’s edge.

“The historical median 1-month, 3-month, and 6-month returns following 5%+ pullbacks (which historically have occurred 3.4 times per year on average) are positive, with the market up ~60% of the time following such pullbacks over each of those time periods,” said Subramanian, [and, as such,]

“trying to time pullbacks can lead to underinvestment and underperformance.”


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