Investing: Don’t try to time the market, BUT if you do…

Posted By on November 3, 2014

Most financial experts emphasis not to “time the market” when investing, but it is difficult to resist researching and compiling statistics?  Well, I’m guilty and have used a few when routinely adding investments to SP500SeasonalTendencies1990a retirement portfolio, particularly when buying the broad market.

In the 1990s when trading futures somewhat regularly (not comfortably or particularly successfully), I kept a pencil drawn chart in my Franklin Day Planner as a historical and “statistical” reminder that several months were better BUY months than others. A few things have changed since then and figured it was time for an update.

What it means “to me” is that  when buying and selling the S&P 500 contract or an ETF, making BUYS  statistically are better March, April, July, October, November and December … with SELLS in May, June, August and September – remember though, experts advise against timing as an investment plan.

Paul A. Merriman (financial educator and best selling author):

First, I know a lot about market timing, which I’ve been using and teaching for 30 years. Second, in theory market timing is brilliant. Third, in practice it just doesn’t work successfully for most investors.

Below is my current Excel Spreadsheet “reminder” chart … use it at your own peril.

monthtoinvest

Comments

Desultory - des-uhl-tawr-ee, -tohr-ee

  1. lacking in consistency, constancy, or visible order, disconnected; fitful: desultory conversation.
  2. digressing from or unconnected with the main subject; random: a desultory remark.