The slowly receding Great Recession has triggered lots of people to think a lot of stress about their financial status and capability to retire. The crash in American real property prices has reduced the value of many estates. This expands the tension to have high returns on existing investments. Market trend timing process are one way of increasing the performance of investments. Let's look at 5 main reason why's the average investor should consider taking this approach to investment choices.
Buy and hold is a very common approach taken by investors seeking long range growth of their money. This is indeed a relatively simple, low overhead approach. The problem with it is that it doesn't always work. There have been several extended periods in the last 100 years when buy and hold results in overall reduction in value of investments. Investment markets have become so volatile that it is actually risky to not maintain at least a minimal level of trading, unlike what buy and hold recommends.
Another reason to take into consideration market trend timing is the increased tension caused from decline of the value of pensions. Some people still have vested interests in very lucrative pension, but the percentage of people of whom this adheres is steadily dropping. As projected pension profit declines, the case for active management such as market trend timing will become even stronger.
Many people will obtain some social security from Economic assistance. However, many individuals have their doubts about the lifelong viability of this system. It seems likely to continue into the future. Nevertheless, it also promises to be modified to reduce its value to at the very least some recipients. This gives another reason for the individual to raise the management of their other investments.
Consumers commonly rely on money-market funds and other kinds of managed investments as an easy way to grow their assets. Unfortunately, analysis of the performance of stock funds indicates that overall their performance is somewhat discouraging. While some funds produce great results some of the amount of time, the overall picture is not that great. Much of the amount of time an investor can produce better results by spreading their money around almost randomly.
Until recently, many people believed in the efficient market hypothesis, which claims that investors always act rationally and with close to perfect knowledge. If this was the case, then timing systems would not be able to beat the market. However, it is becoming more and more clear that markets are far from being efficient. This means that a knowledgeable investor may indeed be able to find ways of beating the market.
There are many systems available for making active trading decisions. The basic principle of all of these is buy low, sell high. Obviously, the problem is timing, knowing when prices are low and when they are high. Trend timing systems generally don't try to identify absolute peaks and troughs in values. They aim to indicate expected costs trends to give the investor some guidance about what to perform next. If they work as claimed, they should give significantly better yields than less active financial investment management schemes.
There is no single investment strategy that works for everyone. Some don't have the time, or possibly the nerve, to make their own investment decisions. However, it is good to be aware of the options and their advantages and disadvantages. A market trend timing system may be a good choice for many investors.
Buy and hold is a very common approach taken by investors seeking long range growth of their money. This is indeed a relatively simple, low overhead approach. The problem with it is that it doesn't always work. There have been several extended periods in the last 100 years when buy and hold results in overall reduction in value of investments. Investment markets have become so volatile that it is actually risky to not maintain at least a minimal level of trading, unlike what buy and hold recommends.
Another reason to take into consideration market trend timing is the increased tension caused from decline of the value of pensions. Some people still have vested interests in very lucrative pension, but the percentage of people of whom this adheres is steadily dropping. As projected pension profit declines, the case for active management such as market trend timing will become even stronger.
Many people will obtain some social security from Economic assistance. However, many individuals have their doubts about the lifelong viability of this system. It seems likely to continue into the future. Nevertheless, it also promises to be modified to reduce its value to at the very least some recipients. This gives another reason for the individual to raise the management of their other investments.
Consumers commonly rely on money-market funds and other kinds of managed investments as an easy way to grow their assets. Unfortunately, analysis of the performance of stock funds indicates that overall their performance is somewhat discouraging. While some funds produce great results some of the amount of time, the overall picture is not that great. Much of the amount of time an investor can produce better results by spreading their money around almost randomly.
Until recently, many people believed in the efficient market hypothesis, which claims that investors always act rationally and with close to perfect knowledge. If this was the case, then timing systems would not be able to beat the market. However, it is becoming more and more clear that markets are far from being efficient. This means that a knowledgeable investor may indeed be able to find ways of beating the market.
There are many systems available for making active trading decisions. The basic principle of all of these is buy low, sell high. Obviously, the problem is timing, knowing when prices are low and when they are high. Trend timing systems generally don't try to identify absolute peaks and troughs in values. They aim to indicate expected costs trends to give the investor some guidance about what to perform next. If they work as claimed, they should give significantly better yields than less active financial investment management schemes.
There is no single investment strategy that works for everyone. Some don't have the time, or possibly the nerve, to make their own investment decisions. However, it is good to be aware of the options and their advantages and disadvantages. A market trend timing system may be a good choice for many investors.
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