Can you time the market?


Can you time the market?

 

 

Is now the right time to invest?

Should I move to cash with all the bad news out there?

Should I really be looking at equities now?

What about moving it all to the bank?

 

 

If you’ve ever chatted about investments with one of our advisers, I’m sure one or more of the questions above have appeared in the conversation you’ve had.

At Johnston Campbell we have always believed it is very difficult, if not impossible, to “time the market” consistently. Can you really tell whether today is a good day to sell or buy?

We believe that over the medium to long term a portfolio of diverse investments that remains invested will always outperform swapping and changing strategies.

Recently we came across this game on a website run by the Personal Finance Club.

 

 

If you have a few spare minutes give it a go. You will be faced with an actual 10-year period from the past, and have to decide based upon market movements whether you should sell or buy. The data is based on historical data of Vanguard’s VFINX “Vanguard 500” index fund, which closely matches the S&P 500 index.

At the end you will be given the total that your strategy returned as opposed to buying and holding for the full period.

My first go I beat the market quite considerably, after that……………errr perhaps not so successfully.

If you want to find out more about how Johnston Campbell put together an individual investment strategy for you, contact us via our website here or please give us a ring on 028 90221010.