Market Timing

Investing

Market timing is the attempt to predict short-term market movements and trade accordingly — buy at lows, sell at highs. Decades of academic research show consistent market timing is virtually impossible; missing just the 10 best days in a 20-year period cuts returns roughly in half. The opposite — staying fully invested through ups and downs — outperforms timing strategies on average. Why investors keep trying: hindsight bias and the seductive narrative that this time the signal is clearer. The behavioral solution: automate contributions (DCA), set asset allocation policy, rebalance mechanically. Time IN the market beats timing the market.