An investment strategy of shifting among asset classes in an attempt to anticipate which asset class(es) will appreciate or depreciate during the coming period.
A classic buy low -- sell high investment approach in which investors try to anticipate the ups and downs of the market, and make their buy and sell decisions accordingly. Market timers buy when they expect the market to go up, and sell -- or lighten their position -- when they expect the market to go down.
A practice whereby a manager shifts between asset classes depending on the expected performance of each class. Can include timing between stocks and cash, or an unlimited number of asset classes. (see Tactical Asset Allocation.)
An investment technique based on a forecast about the direction of the stock market or interest rates. Market timers will put all of their money into stocks if they think the market will rise or long term bonds if they think the market will fall. They will quickly turn their investment into cash if they think that that trend is changing direction. Market timing is very risky. It generates excessive taxes and trading costs and, more often than not, underperforms the simple buy-and-hold investment program.
An often perilous investment practice based on predicting market cycles. The aim is to anticipate the market trend by buying before share prices go up and selling before prices go down.
the attempt to predict future market movements, and basing buy and sell decisions on those forecasts.
A risky investment strategy that involves buying and selling securities on the basis of changes that may take place in the future.
Top-down investing strategies that shifts capital form one asset class to another depending on economic situations.
Practiced by many but mastered by few, an attempt to buy low and sell high.
managers switch among asset classes in an attempt to time various markets
Attempting to leave the market entirely during downturns and reinvesting when it heads back up.
a technique whereby an attempt is made to buy and sell stocks in conjunction with the ups and downs of the market
Attempting to predict future market directions, usually by examining recent price and volume data or economic data, and investing based on those predictions. Extremely difficult, if not impossible, to do consistently.
An element of investment strategy. Investors will often seek to increase the amount of money they can make in a particular security or category of security by purchasing it when the market associated with that type of security is near its trough, and sell these holdings when the market is near its peak.
The shifting of assets in and out of a mutual fund based on performance of one or more market indicators, such as the Dow Jones Industrial Average, the Index of Leading Economic Indicators, or the Prime Rate. Market timers often exchange between a specific fund and the fund's money market fund for this purpose.
Short-term or frequent trading strategies that involve switching money into mutual funds when investors expect prices to rise and taking money out when investors expect prices to fall. Or, for example, an investor may switch back and forth between an equity fund, bond fund, and money market fund, depending on changing market conditions. As money is continually shifted in and out, a fund incurs expenses for buying and selling securities. The Funds do not permit market timing or excessive trading and have adopted special policies to discourage this activity. If you wish to engage in such practices, we request you do not attempt to purchase shares in any of the Funds.
This trading strategy aims for quick profits by taking advantage of short-term changes in securities prices. Market timers, sometimes known as day traders, trade electronically, trying to buy low and sell high by taking advantage of second-to-second or minute-to-minute changes in the financial marketplace, such as a forecast on interest rates or a sell-off in a particular market sector. Most experts agree that day trading is especially risky for individual investors because there is no way to predict changes accurately, and a small miscalculation can result in large losses. Further, there's no guarantee that an online transaction can be made quickly enough to lock in gains or prevent losses, especially in a volatile market.
Market timing is the method of investing in certain asset classes at certain times to improve your returns - particularly stocks. Essentially, market timers try to outguess the trend of stocks or other prices. Although market timing may sound tempting, it has proven to be difficult to do well over the long-term. It may seem easy to wait for a market decline and then buy stocks before prices start going up, but much of the appreciation of stocks comes in brief, unexpected spurts that catch most investors off guard. Usually, by the time a new trend is evident, a significant portion of the appreciation has already passed.
A method of investing in which an investor may try to predict good or bad markets for the purposes of determining when to buy and sell a specific security or fund.
an investment strategy based on predicting short-term price changes in securities.
The attempt to sell a security when the market is high and to buy when the market is low.
The effort to base investment decisions on the anticipated direction of the market. If equities are expected to decline in price, the market timer may elect to hold a percentage of the portfolio in cash reserves or other fixed-income obligations. Timing may be based on fundamental or technical conditions, or a combination of these factors.
Attempting to time the purchase and sale of securities to coincide with ideal market conditions. Mutual fund investors may switch from stock funds to bond funds to money market funds as the strength of the economy and interest rate directions change.
The process of shifting portfolio weightings between asset classes based on predictions about future market performance. Also known as "Tactical Asset Allocation".
The shifting of assets into or out of the market to maximize investment returns based on anticipated market changes
Attempting to only invest when the market has bottomed out (or selling when the market has peaked) in order to achieve the maximum investment gain.
A strategy, based on various economic or stock market indicators, for deciding when to buy or sell securities.
An investment strategy seeking profits by buying and selling securities in anticipation of market conditions.
A method by which investors attempt to track various economic indicators in hoping to purchase an investment and/or sell an investment at the right moment which would yield the highest return. "Buy low, sell high."
Attempting to buy and sell securities to ride up trends and avoid down trends in the stock, bond, currency, or commodity markets. In theory, this can dramatically increase your rate of return, but practically, it is extremely difficult or impossible to consistently make the right decisions at the right time over the long term.
Strategy by which investors attempt to buy low and sell high by buying when the market is turning bearish and selling at the end of a bull market.
A stock market investment strategy that's based on trying to predict market cycles. The goal is to buy before share prices rise and sell before they fall.
A top-down investment strategy that shifts capital from one asset class to another, profiting from movements in interest rates and equity markets. It usually involves large commitments to one or more asset classes depending on the economic or market outlook, with a portfolio frequently being invested 100% in either stocks, bonds or cash equivalents. It is based on anticipating the timing of when to be in and out of markets.
A strategy of buying or selling securities in anticipation of changes in market or economic conditions.
The selling or buying of securities on the basis of short term trends and fluctuations in the market.
The purchase or sale of securities on the basis of shorter-term price patterns and temporary market opportunities as well as judgements of underlying value. An extremely difficult thing to get right consistently.
1. The act of attempting to predict the future direction of the market, typically through the use of technical indicators or economic data. 2. The practice of switching among mutual fund asset classes in an attempt to profit from the changes in their market outlook.
Shifting money in and out of investment markets in an effort to take advantage of rising prices and avoid downturns.
Purchase or sale of stocks on the basis of shorter-term price patterns and temporary market opportunities, as well as judgements of underlying value. Market timing is extremely difficult to get right consistently, particularly for an individual investor.
Asset allocation in which the investment in the equity market is increased if one forecasts that the equity market will outperform T-bills and decrease when market is anticipated to underpreform.
A style of portfolio management that prompts investors to sell investments during market downturns and to reinvest prior to upturns. It is difficult to succeed with this style over a long period of time.
Determination of when to buy or sell securities through use of fundamental or technical indicators. Mutual funds investors can accomplish market timing decisions by switching from different types of funds within a family as the market outlook changes. For example, the investor can switch from a stock fund to a money market fund and back again. See: Fundamental Analysis; Indicator; Market Analysis; Technical Analysis
trying to predict the direction of the market to guide one's investments—this is recognized as a difficult market strategy and has shown only limited success
An investment strategy in which investors switch in and out of securities or between types of funds in the hope of benefiting from economic and technical indicators.
An investment strategy that allocates assets among different asset classes depending on the manager's view of the economic or market outlook. Unpredictability of market movements and the difficulty of timing entry and exit from markets add to the volatility of this strategy.
An investment strategy based on anticipating market trends. The goal of market timing is to anticipate trends–buying before the market goes up and selling before the market goes down. In practice, this is impossible to do with any consistency.
Making buy-sell decisions by attempting to predict market trends, such as the direction of stock prices, the direction of interest rates, or the condition of the economy.
Market timing is the strategy of making buy or sell decisions of financial assets (often stocks) by attempting to predict future market price movements. The prediction may be based on an outlook of market or economic conditions resulting from technical or fundamental analysis. This is an investment strategy based on the outlook for an aggregate market, rather than for a particular financial asset.