Quote:
Originally Posted by aceventura3
Where do you get this stuff? A rocket scientist uses science/math to time his decisions. An investor who does not have science/math involved in timing his/her decisions is simply foolish.
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Benjamin Graham...Warren Buffett...to name a couple. I should clarify though. "Market timing" is a specific investment term for those who try to make money almost solely based on predicting aggregate price fluctuations in the market. It mostly depends on predicting these aggregate movements rather than the movement of individual stocks.
So, in a very real sense, it's gambling, and most people fail at it—some to a small degree, while others to a rather large degree. Others still, simply get lucky. That's the nature of gambling. If I had my choice of wealth manager, I'd pick the one who looks at individual company fundamentals as a basis for their stock's position in the marketplace. I'd pick the one who looks at company values rather than the one who thinks they can predict the behavioural pattern of thousands of emotionally driven people with a bunch of money on the line.
This is not to be confused with timing the buying and selling of your individual investments based on pricing, etc. This is not related to what Obama is doing with releasing oil reserves, which is a decision based on the wider oil market. He's releasing a resource around which a large market is based. He didn't sell some of his Apple stock.