Why Market Timing Doesn't Work

[bjl584]

Market timing doesn't work: S&P 500 14% rally explained by just 8 days (cnbc.com)

[disneysteve]

Just more data to prove what we've known forever. And still, the traders and market timers will keep doing their thing and keep losing money relative to the market. You can't fix willful ignorance.

What makes it hard is that the market timers don't necessarily lose money. They may make a nice profit. It just won't be nearly as much as they would have made had they used a simple buy and hold broad market approach. Maybe they've made 10% this year so they think they're doing great, except the S&P 500 is up 14%. I long ago gave up trying to educate those folks. They're just not interested in learning.

[srblanco7]

Thanks for sharing. A nice reminder - time in the market beats timing the market.