Does IA try to “time” the market?
Yes and no. The classic definition of “market timing” is moving out of stocks into another major asset like bonds, real estate or cash. IA stays fully committed to the positions in its portfolios as long as they maintain their high relative ranking, stay on trend and above their trailing stop losses. The fact of the matter is that even during a mild correction, we have some positions that are sold into the correction because they follow below trend or hit a stop loss. We then wait for market conditions to stabilize and technical indicators to confirm that it’s safe to establish new positions. While we wait, your money is sitting in cash – a great place to be when the occasional correction turns into a full fledged Bear Market.
