Timing the Market is Futile

Timing the Market is Futile

July 09, 2019

At Portfolio Solutions®, the investment philosophy we practice has served our clients for more than 20 years, and it hasn't changed. We are long-term, strategic investment advisors who believe that diversification, asset allocation and rebalancing are all part of a sound investment strategy. These financial concepts are part of Modern Portfolio Theory, which in practice can help investors avoid unnecessary risks.

The portfolios we construct seek a broad-based exposure to desired asset classes by investing in low-cost index funds. We believe this broad diversification offers the best protection against risk, that investment markets are efficient over time, and that attempting to time markets is futile over the long-term. Instead, we monitor portfolios on a daily basis, and rebalance as needed in a disciplined manner. Because markets can change quickly (see chart above) attempts at market timing are not likely to succeed for the long-term investor. We prefer to exercise patience and rebalance without emotional influences to help avoid market timing mistakes.

If you have specific questions or would like to discuss recent changes in your long-term financial goals or financial status, please don’t hesitate to contact us by calling (248) 689-1550.

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All information presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. This information is distributed for education purposes, and it is not to be construed as an offer, solicitation, recommendation, or endorsement of any particular security, product, or service, nor should it be construed as tax or legal advice. Please click here to see our blog disclosure, which immediately follows the “Applicable Law and Venue” section.