Category Archives: Market Timing

The Surprising Resiliency of the Stock Market

A recent report from J. P. Morgan Asset Management highlights a number of interesting facts, including this one: the S&P 500 index has exhibited a positive intra-year return in twenty-eight of the last thirty-seven years. In other words, 75 percent … Continue Reading

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Prophets and Profits: Beware Those Cloudy Crystal Balls

A friend of mine tells about a former colleague, a stockbroker, who was famous around the office for his frequent, dire financial predictions. “He successfully predicted five of the last two bear markets,” my friend remarked. On the other side, … Continue Reading

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Should Market Highs Influence Investment Decisions?

Given recent headlines about indices like the Dow Jones Industrial Average and the S&P 500 Index hitting all-time highs, I thought I would share a piece I received this month from Dimensional Fund Advisors (Dimensional). Dimensional poses this essential question: … Continue Reading

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How to Take Advantage of Market Downturns

“What goes up must come down. Spinning wheel got to go round.” This year’s market calls to mind those classic lyrics from the group Blood, Sweat, and Tears — all things that have clearly been shed in 2016! It’s been … Continue Reading

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Complex vs. Simple Investment Strategies II

Peter Lynch ran the Fidelity Magellan Fund for 13 years, during which time Magellan was the number one general equity fund in America. Lynch’s books One Up on Wall Street and Beating the Street offer up the active manager’s accumulated … Continue Reading

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Brexit Follow-up

They say a picture is worth a thousand words. In this case, I’d argue that your financial future rides on appreciating the following two drawings by author and Behavior Gap founder Carl Richards. The first illustration illustrates how may investors behave … Continue Reading

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A Look Back Since the Financial Crisis

It has been well documented that during the Global Financial Crisis (GFC), many individual investors panicked, sold the bulk of their investments and sat in cash waiting to get back into the market. If you asked them, they would tell … Continue Reading

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Doom and Gloom Predictions

In  A Visual History of Market Crash Predictions, Michael Johnston asks that “when wading through the predictions of financial doom and gloom,” that we keep one thing in mind: In a sense everyone is a salesperson. For editors of personal finance … Continue Reading

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The Wisdom of Buy and Hold

Investors trade more than they used to. Often these buy and sell decisions are emotional responses to market volatility — an attempt to limit losses in choppy markets. We believe an investor should rarely, if ever, make adjustments to their … Continue Reading

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What’s a Perfect Market Timing Strategy Cost?

What if you could invest in what you knew would be the highest performing asset class of the year? For a portfolio of stocks and bonds perhaps you’d build a strategy that can invest in US stocks [for simplicity, let’s … Continue Reading

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