This CIO Special looks at why market timing – in essence, “buying low” and “selling high” – is not a reliable source of investment returns over the longer term.
Subjects covered include:
- Implications of the lack of perfect information on future asset class returns
- Structural reasons why markets are unpredictable and wrong timing is expensive
- Why it makes sense to focus on time diversification instead
The report argues the case for staying invested over the longer term – as it points out, the vast majority of a portfolio’s returns over time will come from effective SAA.