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No, You Almost Certainly Can’t Time Markets

TedTed
in Fund Discussions
FYI: A recently published paper from Willis Investment Counsel, an advisory firm in Gainesville, Georgia, argued that investors lose 1 to 2 percent in annual returns from attempting to time the market. Willis studied timing leakage — the difference between the theoretical return of a fund or portfolio compared to what an investor actually earns. Investors time the market when they don’t give a particular strategy enough time to work out; they overreact to volatility or other news; or they succumb to an irrational need to act and shift their portfolios, as per the study’s definition.
Regards,
Ted
https://www.institutionalinvestor.com/article/b1ck6rht2kz8x1/No-You-Almost-Certainly-Can-t-Time-Markets

Comments

  • MikeW
    This is a very informative article Ted. thanks very much. I have to admit that I'm guilty of this myself.
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