If I am successful in spreading the word via this article, you will not see a lifetime of hard-earned savings go down the drain in one catastrophic bear market. Accumulating wealth may be a matter of time, but I strongly believe that lasting wealth is a matter of timing. Have you noticed that uneasiness in the financial markets is usually accompanied by an increase in the number of articles by academia, mutual fund companies and financial gurus proclaiming that a risk management strategy such as market timing doesn t work and urging investors to stick with a buy and hold strategy. It is easy to refute the academicians because they often expound theories from their lvory Towers without any real-world investment experience. Mutual funds, on the other hand, promote buy and hold strategies because it is in their own best interest to keep the investing public in equities where they earn the highest fees.
Some financial gurus downplay the importance of market timing.
I believe the real problem lies in the definition of terms. At one time or another, Warren Buffett, Peter Lynch, and a number of other investment heroes have urged ordinary investors not to attempt to time the market. I contend that their words and actions reflect what I define as market timing. Malcolm S. Forbes Jr. picked up on Buffett s timing tendencies. We said, gosh, he sure called that one right.