Lessons in investing

Lesson 5: Does timing the market work?

Investors are used to hearing that it’s a ‘great time to buy’ or the ‘ideal time to sell’. Messages like this make up most of the headlines in the money pages.

The trouble is, they’re rarely right. The best time to buy is when equities are at their lowest point, before they start to rise in value again. But who knows when this is going to be?

AcuityThe balancing actThis issue looks at how the mix between bonds and stocks shapes long term outcomes. Using data from February 1979 to November 2025, the chart shows best, worst and average annual returns for portfolios ranging from 100% bonds to 100% stocks. Too little stock market risk and your portfolio may strugg

AcuityINSIGHT: Currency risk through a long term lensFollowing the previous issue’s long-term view on markets, this issue applies the same lens to currency risk, examining the recent depreciation of the US dollar and what it means for globally diversified. Using a simple worked example and historical data, it highlights why currency fluctuations - whi

AcuityINSIGHT: Market crises through a long-term lensThis issue addresses common investor concerns about market highs - reaching new records is a regular occurrence and not necessarily a signal of an impending downturn. With some supporting historical data the insight reinforces the need to take a long term view and avoid trying to predict a market do

Lessons in investing

Lesson 5: Does timing the market work?

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