Five big calls that market timers rarely get right

By: Tim Bennett
Market timing is fraught with risks for equity investors. Tim Bennett looks at five ways investors can get it wrong.

Five big calls that market timers rarely get right

If you would prefer to listen to this episode of Killik Explains, listen to our podcast version by pressing the play button to the left.

Five big calls that market timers rarely get right

Many investors make the mistake of trying to time the fickle stock market. Most are doomed to get it wrong. Here is a quick look at why, through the lens of the five judgements needed to succeed.

The big five

So, what are these judgements that will define whether an investor times the market correctly? Here is a summary;
Adam Grossman sums up the problem quite succinctly;

2016 US election predictions

It may seem like old news but it is easy to forget how wrong most people were about Donald Trump’s chance of success in the 2016 elections. This is a case study in how hard predicting events can be, let alone how the stock market will react to them.

2016 elections outcome

Even being at the centre of events, as President, subsequently doesn’t confer any great powers of prediction. Given that, what chance do the rest of us stand of forecasting the future?

A better bet

Rather than trying to second guess complicated economies and markets, a better bet is to stick to a long-term strategy based on three key pillars.
To discuss any of these in more detail, please contact an Investment Manager.