A Responsible Version of Market-Timing
Rebalancing your portfolio allows you to 'buy the dip.'
I recently saw this E-Trade commercial. It begins in an auction room where bidders are looking to buy different types of dips--like French onion and spinach and artichoke (I prefer the former). E-Trade jokes that if you think dips are food related and not investment related, maybe trading isn't for you. Though the commercial is tongue-in-cheek, it may prompt investors to think about "buying the dip," or buying investments when prices are down.
What Is Market-Timing?
This got me thinking about market-timing, the practice of trying to predict future market prices and buying or selling accordingly. The goal, of course, is to buy low and sell high. But individual investors aren't great at this. Predicting when an investment or asset class will go up or down is hard enough for professional investors, let alone individuals building their savings.
Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.
We’d like to share more about how we work and what drives our day-to-day business.
We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.
How we use your information depends on the product and service that you use and your relationship with us. We may use it to:
To learn more about how we handle and protect your data, visit our privacy center.
Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.
To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.
Read our editorial policy to learn more about our process.