Does Market Timing Work? Risks & Alternatives
Timing is everything, especially when it comes to investing.
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Market timing—trying to precisely predict and capture market tops and bottoms—is intriguing to many investors. And it’s understandable, as the allure of outsmarting the market to maximize returns can be enticing.
But is it reasonable to think that you can time the market to beat the averages, or is it a fool’s game in which the risks outweigh the potential rewards?
Key Points
- Perfect market timing is a myth; even experienced investors struggle to consistently predict market movements.
- Attempting to time the market can result in missed opportunities and have a significant negative effect on investment returns.
- Long-term success can be better…
