Avoid Market Timing (Key Investing Principle #7 of 10)

By Jeffrey Meenes, CFP® (Published Date March 2, 2023)

The U.S. stock market has been an engine for wealth creation throughout the past century. This is especially true when investors are mindful of how markets work, what strategies deliver success, and what not to pay attention to.

How exactly can a successful investor approach the markets? In this blog tip series, we highlight ten principles an investor can follow to create a better investing experience and generate consistent returns over time.

Key Investing Principle #7 to Improve Your Odds of Investing Success: Avoid Market Timing

It's impossible to know which sectors will perform best year-to-year. Even if you could skillfully interpret future corporate earnings or the world economy, you would need to do so better than the combined abilities of other sophisticated investors. No one has ever proven the ability to repeatedly profit by market timing. Holders of a well-diversified portfolio over time are positioned to capture returns wherever they occur.

Focus on what you can control.  A fiduciary financial advisor can offer expertise and guidance to help you focus on actions that add value. This can lead to a better investment experience.