I recently posted an article from Zacks titled “When Does Market Timing Actually Work.” The post was not an indication that I feel market timing is a good idea, because it isn’t. But the it does provide a simple, common sense explanation of the topic and how you may think about the idea of Market Timing. The article outlines the three basic steps needed for doing “successfully.” Then demonstrates that statistically the majority of traders aren’t successful. The last couple of paragraphs discuss the appropriateness of establishing a “risk adjusted” portfolio for your retirement.
So why did I post the article, what’s the point. Market timing is fundamentally a strategy that attempts to take advantage of the occasional and naturally occurring inefficiencies that exist in the market. You know, Buy low, sell high. Again, I’m not advocating that you “try this at home,” however, this concept can be implemented in the allocation of a larger investment strategy through one of our investment managers. This is just one of the ways we strive to customize an investment strategy to align with your objectives AND personality (how you really feel about your money).
And the point about having a risk-adjusted portfolio for retirement can not be over emphasized. When it comes time to begin distributions from your life saving risk can be every bit as important as return. For most of us, when it come to retirement, there’s no do-overs.