SmartGuyStocks.com

Does Market Timing Actually Work?

With all due respect, why post these charts that mutual funds use to sell their products? Savvy investors know that this data is HEAVILY SKEWED because it 1) includes the mass herds of morons who buy high on greed and sell low on fear, and 2) the assumptions are that you are invested in the indexes and somehow missed the best trading days in the history of the universe (sounds like a nice way to present your case).

If a person does not have time to manage their money, they should hire a professional and get into well diversified funds. However, if someone is reading this blog, we should assume they are trying to do more and maximize ROI. For example, selling short or buying puts on banks and housing has been great, while buy and holders are losing money like crazy (and your argument supports buying and holding).

Bottom line: these charts and arguments are marketing materials to sell financial products to the ignorant herds. People on SeekingAlpha are interesting in beating the markets (i.e., we are seeking ALPHA).

My hunch is that this type of stuff makes people feel better when they are losing money as buy-and-holders. It has no other value unless you are a broker ...