Market Timing Does Not Work

You Cannot Time The Market

The past four years have taught us all many important lessons in the area

of investing. First, that it does not pay to try and time the market. Investors

who became timid and scared in the Fall of 2008 (and subsequently sold their

stock and bond holdings) have not fully recovered from the crisis as well

as investors who stayed allocated and diversified among their stock, bond

and commodity holdings.

This is probably the most important lesson that we can glean from the recent (and

ongoing) financial crisis: that crises come and go, but the fundamental laws of investing

are as ancient as mankind has traded goods and services.

Our firm has always espoused the virtues of Time In The Market vs. trying to Time

The Market. Market timing does not work in the long run. Sure, any investor can

buy a double long ETF, or a double short ETF and perhaps fare well over a short

time period. But in the long-run, astute investors that have a disciplined, well

thought out and thorough asset allocation investment plan will almost always (with great

certainty) fare much better than those investors who do not.

As simple as this sounds, this is probably the most important fundamental concept that our

firm has communicated to our clients in the past decade. After all, not all asset classes

and sectors have been 'flat' or 'down' in the past ten years. Certain commodities have

had explosive gains, such as gold and silver. Certain international equity sectors have risen

dramatically in the past ten years: Brazil was up 21.83%; South Korea up 16.99%; Mexico

up 16.50%, and Australia up 14.13% (Source: iShares ETF's; www.ishares.com). Although

past performance is no indication of future results, a ten-year track record does help when

making investment decisions.

So, you see, the most important aspect of being a successful investor is simply ignoring all

the so called 'experts' on the 24/7 financial news channels, and simply following a disciplined,

long-term investment plan. 

It also pays in the long-run to work with a seasoned Wealth Manager who can guide you through the volatility of the marketplace. We have been educating our clientele to keep their long-term focus and I am proud to say that we are enjoying our tenth year in business on Wall Street.

Disclaimer(s): 

The Information Contained Herein Is Based On Data Obtained From Sources Believed To Be Reliable. However, Such Data Is Not Guaranteed As To Its Accuracy Or Completeness And Is For Informational Purposes Only

Always consult the advice and counsel of a Wealth Manager who is a Fiduciary.

Understand that past performance is no guarantee of future results when investing.  

Investing in stocks and bonds carries significant types of risks in all types of market environments.  Investing in stocks and bonds does also carry risk(s) of losing your entire principal investment.  You should always consult with your Financial Professional before purchasing any investment to examine its merits, and to weigh its risks.  There is no such thing as a ‘guaranteed investment’ and you should be very skeptical when you are told that something is ‘guaranteed’, unless of course it is an instrument backed by the Full Faith & Credit Of The United States Of America.