Timing the Market By David Maxwell

Those individuals who try to time the market through technical analysis invariably discover that they may perhaps have made a grave error in judgement.  One can perhaps anticipate a market direction as exhibited by a put or call option strategy but even this methodology is not precise.

There was always a simple rule about investing in the market, that is, when you have the money to do so, and take it out when you need the money.  This is a basic tenant for a long-term strategic buy and hold investment strategy.  Of course, there are other strategies such as harvesting profits and purchasing something that might be a good investment but may be down in value at the moment. However, just remember any gains you have might trigger a tax consequence; income tax for gains made in less than a year and capital gains for holding periods of a year or more.

Pursuing your investment goals may be achieved by time spent in the market and not timing the market!

David Maxwell, AAMS, CEBS

There is no assurance that the techniques and strategies discussed are suitable for all investors or will yield positive outcomes.  The purchase of certain securities may be required to effect some of the strategies.   Investing involves risks including possible loss of principal.