2. The practice of switching among mutual fund asset classes in an attempt to profit from the changes in their market outlook.
Some investors, especially academics, believe it is impossible to time the market. Other investors, notably active traders, believe strongly in market timing. Thus, whether market timing is possible is really a matter of opinion.
What we can say with certainty is that it's very difficult to be successful at market timing continuously over the long-run. For the average investor who doesn't have the time (or desire) to watch the market on a daily basis, there are good reasons to avoid market timing and focus on investing for the long-run.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
Market timing — is the strategy of making buy or sell decisions of financial assets (often stocks) by attempting to predict future market price movements. The prediction may be based on an outlook of market or economic conditions resulting from technical or… … Wikipedia
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market timing costs — costs that arise from price movement of a stock during a transaction period but attributable to other activity in the stock. Bloomberg Financial Dictionary … Financial and business terms
computerized market timing system — A computer system that compiles large amounts of trading data in search of patterns and trends to make buy and sell recommendations. Bloomberg Financial Dictionary … Financial and business terms