Most investors will claim, upon examination, that they do not try to time the market. Most investors are only kidding themselves. There is never a lack of people who claim “they knew” something was going to happen and that their test method of investing paid off. But how many people actually sold out of their entire portfolios in September 2007, knowing that an epic sell-off was about to occur, then waited on the sideline for 18 months and re-invested in March 2009?
There is even data to back up the fallacy of market timing. For more on this and other common misconceptions in investing, check out our new article, Misconceptions are the Vultures of Investing, this Thursday.