Please note: this article is more than one year old. The views of our CIO team may have changed since it was published, and the data on which it was based may have been revised.
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.
