Submitted by Susan Powers on May 21, 2019
With May seeing a return to volatility in the stock market, we appreciate some investors may be feeling renewed anxiety. It’s important to remain calm and remember that volatility is a normal part of investing.
It may sound reasonable to get out of the stock market now thinking you’ll eventually getting back in. However, you’ll likely miss some of the biggest up days in the market having a significant impact on the value of your investments.
What Is Market Timing?
Market timing is a type of investment or trading strategy:
- The attempt to beat the stock market by predicting its movements and buying and selling accordingly
- It is the opposite of a buy-and-hold strategy
Why Market Timing Doesn’t Work