How Market Timing Destroys Wealth

StopWatch resting on plots of monthly stock market averages. Focus is on upper watch face.

So-called “experts” are telling us about the coming uber-bear or why the bull market will continue. Yet the data show that trying to predict the market’s direction to time buys and sells is the wrong approach to investing.

Data from the last seven bear markets show that a large percentage of losses and gains happen in very short periods of time, requiring timers to have uncanny accuracy and resolve. Investors are better served to ignore market calls and follow the time-tested practice of holding well-diversified portfolios that meet their goals across long market cycles.

Read the full article at Advisor Perspectives.