Market Timing Facts vs. Market Timing Fiction

The phrase “market timing” has been terribly misused, and misunderstood, by market commentators, analysts, traders and investors.

A stock, mutual fund, commodity, is purchased with the expectation it will be worth more over “time.” It is sold when the expectation is that its value will decrease over “time.” Any analysis intended to create a profitable return on investing, is a form of market timing.

The fact is, no one buys a stock expecting it will be worth less over time. They choose a “time” to buy it, based on fundamental or technical analysis, and expect that over “time” it will be worth more.

Market timers usually use index mutual funds covering one or more of many possible markets. They can time the S