Does Market Timing Work?
Just to set the record straight upfront, if market timing is defined as PREDICTING what the market is going to do in six months or one year, we do not believe that anyone can predict which direction the market is going reliably and consistently. It simply cannot be done. If market timing means beating the market EVERY year, month, week or day, we agree, no one can either. On the other hand, we will NOT HESITATE to take on anyone who proclaims that beating the market consistently with timing is impossible. Tons of research and evidence have been published for the validity of numerous technical analysis methods. We recognize that there are too many short term trading systems for FOREX or Day Trading, and get rich quick schemes out there. But even the recognized leader of investment newsletter monitoring, Mark Hulbert of The Hulbert Financial Digest, frequently reports that market timing without a doubt can consistently beat the market over long periods of time.
