The same wisdom holds true for bailing into a market. It's true that when the market drops, you can buy at bargain prices. But, don't dump an extraordinary amount of money into one type of investment. That investment could continue spiraling downward for a sustained period of time. Studies show market timing is often bad timing Numerous studies have explored if investors can reasonably expect to gain anything by timing the market.
Results show the answer is an emphatic no .
For example, one study conducted in 1975 by economist William F. Sharpe, who later won a Nobel Prize, found managers who time the market must be correct three out of four times just to match the performance of those who remained fully invested. Over long periods of time, the costs of bailing out are considerable and virtually unavoidable. Stick to a strategy representing your long-term objectives. When you invest without interruption, your chances of achieving planned objectives increase significantly. Your Annuity Board retirement plan offers an ideal alternative to active market timing.