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Market Timing Has Picked Up Since Covid. It Has Cost Investors Dearly.


Published on 2024-12-05 10:31:22 - Wall Street Journal
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  • Research finds investors in all categories of active funds have been trying to buy low and sell high
  • and they aren't very good at it

The article from The Wall Street Journal discusses the pitfalls of market timing, where investors attempt to predict market movements to decide when to buy or sell assets. It highlights that while market timing can occasionally lead to significant gains, it often results in missed opportunities and lower returns compared to a long-term, buy-and-hold strategy. The piece references a study by Morningstar which showed that investors who frequently traded in and out of funds underperformed those who stayed invested. It also notes that emotional reactions to market volatility often lead to selling at market lows and buying at highs, which is counterproductive. The article suggests that instead of trying to time the market, investors should focus on their long-term financial goals, diversify their investments, and maintain a disciplined approach to investing, thereby potentially achieving better outcomes over time.

Read the Full Wall Street Journal Article at:
[ https://www.wsj.com/finance/investing/market-timing-buy-sell-investor-impact-7e5af96a ]