Avoid trying to Time the Stock Market!

Stock market timing is one of the all-time great myths of stock investing. There is no strategy that consistently tells you when to be in the market and when to be out of it, and anyone who says otherwise usually has a market-timing service to sell you. Not a single one of thousands of funds has tracked over the past two decades has been able to consistently time the stock market. Sure some funds have made the occasional great call, but non have posted any kind of superior track record by jumping frequently in and out of the market based on the signals generated by a quantitative model.

That's pretty powerful evidence that market timing is not a viable stock trading strategy because running a mutual fund is a very profitable business if someone had figured out a way to reliably time the market, you can bet your life they'd have started a fund to do so.


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