{"id":23148,"date":"2021-01-11T09:20:47","date_gmt":"2021-01-11T13:20:47","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=23148"},"modified":"2021-01-24T18:07:23","modified_gmt":"2021-01-24T22:07:23","slug":"does-market-timing-work","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/does-market-timing-work\/","title":{"rendered":"Does Market Timing Work? Top Reasons It Doesn’t"},"content":{"rendered":"\n

Does market timing work? Is it a good or bad investment strategy, and what does Benjamin Graham say about it in The Intelligent Investor<\/em>?<\/p>\n\n\n\n

Market timing is a popular strategy. But does market timing work? While Market Timing is a popular strategy, Benjamin Graham actually argues that it’s a form of speculation, and should be avoided. <\/p>\n\n\n\n

So does market timing work? Keep reading to find out the pros and cons. <\/p>\n\n\n\n\n\n\n\n

Does Market Timing Work<\/strong>?<\/h2>\n\n\n\n

Marketing timing is popular. But does market timing work? Market timing has a strong allure: buy when the market is down, and sell when the market is up. The trouble is determining when exactly the bottom or the peak of a market is. This often seems obvious in retrospect but is exceedingly difficult to predict in the future.<\/p>\n\n\n\n

Graham argues that market timing is so unreliable that it should be considered speculation<\/strong>. There is little evidence that any individual investor should be able to beat the overall market at market timing.<\/p>\n\n\n\n

Why Do People Like Market Timing?<\/strong><\/h4>\n\n\n\n

Speculators are drawn to market timing for a variety of reasons, and don’t usually stop to ask “does market timing work?”<\/p>\n\n\n\n