25/08/23
News, Resources, Insight and Opinion from Browning Financial Planning
Market Timing
25/08/23
The economy cannot be forecast nor the market timed.
It therefore follows that the best time to buy equities is when you have the money, and the best time to sell them is when you need the money.
Do not get into the game of "taking profits" when the market is doing well and do not start panicking when the great companies of the World go on sale. And do not chase the latest fad or "hot tip".
These are manifestations of fear: The irrational fear of losing all your money and the fear that everyone else is getting rich, except you. Both lead to the destruction not only of wealth but of hope.
The MSCI World Index, betweeen 31/12/83 and 31/12/19, grew 1302%. Had you missed the best 10 days, this would have reduced your return to 722%. Had you missed the best 30 days, the return would have reduced to 295%. And had you missed the best 50 days, the return would have reduced further to 108%. Trying to time the market is absolute madness!