Avoiding market timing can lead to better longterm investment outcomes from "summary" of All About Asset Allocation, Second Edition by Richard Ferri
Market timing refers to the practice of moving in and out of investments based on predictions about the future direction of the market. Many investors are tempted to try to time the market in order to maximize their returns. However, this strategy is fraught with risks and can often lead to poor investment outcomes in the long run. Attempting to time the market involves making accurate predictions not only about the direction of the market, but also about the timing of these movements. This is a difficult task even for professional investors, as markets are inherently...
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