Timing the market sounds great, especially during times of market distress like that caused by Cornovirus (COVID-19) concerns. Who wouldn't want to participate only in the ups while avoiding the downs!? Sadly, the only way market timing will work is for you to get lucky, which is no way to invest your life savings.
Listen to Kevin describe the theoretical reasoning about why market timing does work and investigate both the academic research as well as the actual record of mutual funds that follow timing strategies. It's interesting to see how the research has been verified in practice by these funds.
Instead of falling victim to the allure of market timing, Kevin describes the current situation and prudent, processed-based response to help you tune out the noise and stay on track.
Episode 27 Investing Process: https://retiresmarter.podbean.com/e/your-investing-process-part-1/
Timestamps:
3:15 - Cluster Effect
7:58 - Different Types Of Asset Allocations
14:00 - Why Staying In The Market Long Term Is So Important Instead Of Market Timing
21:56 - Mutual Fund Evidence
25:52 - Things Are Bad Right Now, But Market Timing Isn’t The Answer
