The Tradeoff of Market Timing

Timing the market is the holy grail of investing. On one hand, traders try to time the market opportunistically to achieve higher returns. On the other, many portfolio managers try to sidestep bad market conditions to lower the risk of the portfolio. The effect of compounding can make this a worthwhile practice, as seen in the table below: When you lose 50% on an investment, you need 100% gain to... READ MORE