Why you should avoid practicing
market timing There are many things that could affect the overall equity market and any individual stocks you may own--from economic trends to geopolitical events like an election.
Treynor and Mazuy (1966) introduced the
market timing model to observe if investors time the market while making investment decisions.
Resist the urge to participate in
market timing, which is defined as trying to exit and enter a certain investment position.
Today, the four methods that are largely used to help investors in their
market timing are growth, value, momentum and technical.
As history has shown repeatedly,
market timing is a losing game.
A 10-year study by the Pensions Institute at Cass Business School, which is part of City University London, claims that 99% of all equity mutual fund managers are unable to deliver outperformance from stock selection or
market timing.
The research on debt
market timing started with Taggart (1977) and Marsh (1982).
According to Esiner, if early-week figures were found to be disappointing, thus confirming the trend observed in the eurozone in recent months, this would lead to an increase in
market timing on a potential medium-term change of the ECB's reference rate.
up to five years) impact of IPO
market timing on issuing firms' capital structure is examined and it is found that
market timing does not have a persistent impact on issuing firms' capital structure.