Several years ago there was a 23-year brokerage study on Timing. The clients that bought & held the Index got a 14%/yr return for that 23 year period. The clients that sold when the market dipped and then bought back in when it recovered got an average return of about 2.5%/yr for that same 23 yrs. It turns out that human intuition is almost always wrong. One common phrase was "I'm waiting for the market to recover so that I can get back in". Ie, after the market recovered (presumably to new highs?) the clients got back in - and bought at all time highs - the opposite of buy low, sell high.
Thu Nov 28, 2013 5:00 pm
Julien43 New Poster
Cash: $ 0.45
Joined: 28 Nov 2013
Thanks Folks, Your replies are most appreciated!!! nt