What effect has market timing had on the Growth and Momentum Portfolio?
Before the third Quarter of 2004 no attempt was made to time the market even though the HenryWirth.com portfolio was generally less than 100% invested. That was because stocks that had been held for three months were generally sold and, if no new picks were available, cash from the sale was held. During the third Quarter of 2004 my consultants and I decided to lighten up because we were worried about market fundamentals. That was a mistake that cost the portfolio about 8% during the fourth Quarter. Because of that mistake and because all my data show that market timing is likely to hurt more than it will help, after 2004, the portfolio will be 100% invested at all times.
