Why Market Timing Doesn't Work: What the Data Really Shows

Описание: Is trying to time the market actually a good idea? In this Market Commentary, Rick Wedell breaks down the data behind market timing decisions and explains why the math tends to work against investors who try it.

Rick walks through the psychology of fear-based decisions, the statistical reality of buying and selling timing accuracy, and why even professional institutional investors avoid this approach. If you've ever thought about moving to cash during a downturn, this commentary is worth watching before you act.

Topics Covered:
• Why fear-based investing decisions tend to backfire
• The data on how often investors get the sell decision right (and what it actually means)
• Why correctly timing both the sell and the buy is far harder than most investors realize
• How probability math stacks the odds against market timers
• Common cognitive biases that lead investors to overestimate their timing ability
• What institutional investors and endowments actually do with their portfolios

If you have questions about how this applies to your portfolio, reach out to your Advisor.

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This commentary reflects the personal opinions, viewpoints and analyses of RFG Advisory, LLC employees and should not be regarded as a description of advisory services provided by RFG Advisory, LLC or performance returns of any client. The views reflected in the commentary are subject to change at any time without notice. Nothing herein constitutes investment advice, performance data or any recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. RFG Advisory, LLC manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Investments in securities involve the risk of loss. Past performance is no guarantee of future results.

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