The impact of missing just a few of the market’s best days can be profound, as shown by this animated look at a hypothetical investment in the stocks that make up the S&P 500 Index. The short one-minute Dimensional video below is based on the total return of the S&P 500 Index from January … [Read more...] about The Cost of Trying to Time the Market
market timing
Missing the Market’s Best Days
If you had invested $1,000 in the stock market in 1990 could you figure out how much that money would be worth today? Possibly. However, if you tried to time the market during that period, I bet you would be surprised how much you would have lost just by missing a few of the market's best … [Read more...] about Missing the Market’s Best Days
History Shows That You Can’t Time Stock Market Returns
History shows that you can’t time stock market premium returns. A historical study of stock market returns has shown that the global stock markets have rewarded investors for taking on more risk with smaller companies, and value companies. However, to capture these market historic premiums, you have … [Read more...] about History Shows That You Can’t Time Stock Market Returns
Belling the Cat – Using research to time the stock markets
Sometimes even the best of ideas are only good in theory because they are impossible to implement in practice. This holds true to the financial world as well. Academic financial research generates hundreds of research papers each year highlighting potential ways for investors to get a … [Read more...] about Belling the Cat – Using research to time the stock markets
Timing Isn’t Everything
Over the course of a summer, it’s not unusual for the stock market to be a topic of conversation at barbecues or other social gatherings. Occasionally, a neighbor or relative might ask about which investments are good to buy now. The lure of getting in at the right time or avoiding the next … [Read more...] about Timing Isn’t Everything
When will a Hockey Goal be scored?
Sometimes you just have to be patient Maureen and I were fortunate enough to be invited to a New Jersey Devils hockey game as they took on the New York Islanders. Our good friends Jeanne and John have excellent seats at the Prudential Center, and we were excited to see this fast-paced game in … [Read more...] about When will a Hockey Goal be scored?