Market Review and Trends
Market Timing
By InvestingNook  •  July 23, 2014
Two concepts widely debated on would be timing the markets. Essentially, the former refers to individuals entering and exiting the market at crucial moments to effectively maximize their returns. While the latter just refers to individuals entering the market and holding on till the stock has reached its fair value. Despite being a value investor, even I have constantly questioned myself regarding this issue.
What if I sold King Wan Corporation when it hit the previous high of 34c, and bought back when it reached the low of 25c?
Honestly speaking, following such a method I would have made a huge load more money. However, the crux is that this is all in hindsight. Would I know back then to sell? Did I even have the inclination to sell? The answer would be NO! Given that we are just merely mortals, how are we able to effectively time the markets? Aside from technical analysis, and other factors such as market psychology and economic news, with that many variables how does one perfectly time the market? To date, I have yet to have met someone who has been able to effectively time the market. market-timing   I would like to highlight a research done by Schwab Corporation on market timing. (Click Here) ......
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By InvestingNook
As Co-Founder and Fund Manager of Heritage Global Capital Fund, we started InvestingNook as a website dedicated to sharing the knowledge of value investing – allowing our readers achieve an edge over the markets with the knowledge of value investing.
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