If you want an example of the futility of following the strategy that you appear bent on pursuing — i.e., timing the market, or
jumping out of the stock market to avoid downturns and then jumping back in to reap stocks» gains — you need look no further than last year.
Not exact matches
By the fall
of 1929, the
stock market peaked and then plunged, financially - ruining many
stock investors (some
of whom
jumped out of tall city buildings to their deaths).
To try to
jump in and
out of the
stock market is not really a good idea.
Funny how they are not
jumping out of windows when a
stock market crashes nor are their kids committing suicide because they can not get a new playstation!
With all the attention the financial press gives to the
market's ups and downs, it's easy to equate smart investing with good timing — i.e., knowing when to
jump out of stocks and into bonds or predicting which type
of investment is about to skyrocket and which is ready to nosedive.
Similarly, the gains you earn will vary based on how you divvy up your portfolio between
stocks and bonds, as well as on whether you stick to your
stocks - bonds mix (and periodically rebalance to do so) or
jump in and
out of the
market or shift your mix around in an attempt to capitalize on a shifting
market.
I did that the other day and these are the words that
jumped out at me off
of Page 254: «The U.S.
stock market ups and downs...
When you try to pick individual winners and losers in the
stock market, and
jump in and
out of the
market, far too often you'll end up losing your shirt in the process.
Investors Sour on Pro
Stock Pickers Investors are jumping out of mutual funds managed by professional stock pickers and shifting massive amounts of money into lower - cost funds that echo the broader ma
Stock Pickers Investors are
jumping out of mutual funds managed by professional
stock pickers and shifting massive amounts of money into lower - cost funds that echo the broader ma
stock pickers and shifting massive amounts
of money into lower - cost funds that echo the broader
market.
For these people, most
of their
stock market timing endeavors consist
of figuring
out when to
jump into the
market at an optimal time in order to rebalance their portfolios.
Tales
of the Great Depression and people
jumping out of buildings during the
stock market crash
of 1929 floated in my mind.
Price developed his investment philosophy in the 1930s, when the prevailing approach was to
jump in and
out of stocks based on the cyclical nature
of the
stock market.
I've never been a fan
of market timing or thinking I could «beat» the
market buy
jumping in and
out of stocks.