The Perils of Market Timing
Labels: Investment Strategy
Economic uncertainty. Volatile markets. Abundant index funds. Ease of trading. Taken together, these elements offer investors the ability to indulge a long-standing tendency – market timing. In an era when crazy financial markets almost feel normal, the past quarter netted a 12-14% decline in major US indices, with weekly swings of 4-7%. This summer, attention bounced between America to Europe and moods shifted from hopeful to dreary to encouraged to dismal. Such a setting may be the new normal for the time being. In the grip of it all, armed with keyboards and touchscreens, what are investors to do? It seems many trade index funds, buying when they sense a bargain and selling when they’re scared.
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