Portfolio Management - Time In The Market

http://createwealth8888.blogspot.com/2009/10/portfolio-management-growing-money-tree.html

"You cannot afford to wait for perfect conditions. Goal setting is often a matter of balancing timing against available resources. Opportunities are easily lost while waiting for perfect conditions." -Gary Ryan

"You can't time the Market!"

You guess who are the people shouting that? Likely, these people are the fund managers and then echo closely behind are the retail value investors.

There are good reasons for fund managers to discourage investors from market timing so that there is less churn in their fund and they are less pressurized to perform as dividend yield from the portfolio is able to adequately cover the fund's management fees and expenses.

But, I don't understand why retail value investors also shouting that? "You can't time the Market!"

Now back to LHS.

LHS = Current Value of All the Stocks in our Portfolio + Available Cash left for investing or trading.

This requires you to try to time the Market and try to optimize the allocation of stocks and available cash according to your own market forecast in the next few months.

The Truth is that we can NEVER time the market CORRECTLY and no one can; but, it doesn't mean that we can't spend time in the market and also to time the market to exit when it hits our own profit target.

The key is that we want to time the market to generate cash flow for our portfolio and not to correctly time the market. See the difference!