Time in the market vs. timing the market

This latest issue provides a reminder of the challenges of trying to time the market.

We run an experiment using a basic 'on a roll' momentum style strategy and a basic 'contrarian' style strategy compared to a buy-hold-rebalance 50/50 split between bonds and equities. Neither timing strategy delivers a material return difference, but both are materially more volatile than the buy-hold-rebalance approach over the period reviewed. There are a couple of great quotes from Bogle and Buffett too, and some evidence that market timing skill in professional fund managers is extremely rare.

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AcuityINSIGHT: Rolling, rolling, rollingIn this latest issue, we help provide some perspective around the journey different investors can experience whilst getting to the same result based on the rolling period of their portfolio review. Periodic - but not too frequent - check-ins and maintenance of an investment portfolio is good practic

AcuityINSIGHT: Structured products - what you don't seeStructured products, although superficially appealing, the lack of insight into the chances that different outcomes will occur, (and the complexity of modelling outcomes) combined with high, hidden embedded costs makes them unattractive for long-term portfolios. This issue shows that such systematic

AcuityINSIGHT: Emotions and market timing are likely to be costlyThis latest issue looks at the challenges of emotion and market timing. Recent evidence shows that net new flows into bond funds in the US is driven largely by recent bond market performance e.g., exhibiting huge outflows in 2022 after poor performance. A couple of our favourite quotes on the subjec

Time in the market vs. timing the market

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