Time or Timing The Market

Timing the market can be dumb luck, but its a beautiful thing if you get this right. But who can get this right all the time

So broadly speaking time in the market is key to achieve financial freedom, do you agree??

I know…..Basic stuff, but I have been doing this for over 20 years and I have seen many investors not make it, they don’t stay the course for whatever reason

So for those who have kept going, don’t forget to smell the roses along the way.

 

I believe it's time in the market rather than timing the market, but I have been lucky to have both.

A property I sold this year was a property that I kept for a number of years because I knew long term it was going to pay off. It was flat for a number of years and valuations always came under whenever I needed to move my loan for this property! I decided to sell this property at the end because of the massive growth and it was time to use the funds for other ventures.

 

COVID has shown us all how easy it is to time the market NOT

 

Yes, rare episode. Government funded boom Got to thank our leaders for this I think

 

Timing the market will always trump Time in the market, but it's not possible to do it right all the time. So best will be combination of both.

 

Ohh.. I always though you to be a 'timing the market' kind of investor. That's not necessarily a bad thing if you have the knack for it. A lazy buy and hold investor like me prefers a buyers market where there's no competition so that bargains and good yields can be had for the long term.

However, I'm starting to change my tune a bit and am finding markets that have a bit of both.

 

definitely time in the market.

PPOR, get a place which is suitable for you. hold
IP, solid area / building, and solid rental prospects. hold

 

I am a huge fan of diversification into many markets, this will improve changes. Saved my bacon a few times

 

Yes, agree completely. Better to play into rising market wherever it is. If you can't then, time in market is second option.

 

Timing markets is easy money, but its not possible to get it right all the time.

i got it right 7 times when buying, but took my profits too early, left money on the table 5 times…
So what am I doing now???? Sell nothing….. lol

 

If developing very important as reduces risk

 

Time can forgive poor timing - but is nicer to have both. Basic rules of buy when everyone is selling, grit the teeth and hold

 

I did try to go all in during 2020. But the bank was the biggest road block for me.
DTI hard cap was the biggest BS ever.

I was reading what the USA did in 2008. When QE happened.. This was going to be the case for Australia.
More money in the economy = higher asset price.
We aren't reinventing the wheel here. So just go in hard before it happen.
Don't worry about what the RBA says. They are just sheep and follow the lead of FEDs.
All eyes on J Powell and J Yellen as long as they are in charge. The money printing press will flow.

 

for timing the market to sell,
may be a statistical way to approach it ?

get the average annual growth, and standard deviation of annual growth, over 30 years....
if you had a good run, above 1 (or more) standard deviation across your holding period, sell.

 

This old chestnut - again

Council Post: Why Trying To Time The Market Doesn’t Pay

6 Reasons Why Market Timing Is For Suckers

The Problem With Market Timing

 

Time in the market for us.
We invested more than half our portfolio in Brisbane 10 years ago with townhouse developments in Annerley and Camp Hill, instead of putting more into our local Sydney market.
They were underperforming for so long, although it was also done for building equity, depreciation and low maintenance rental returns.
However, it’s starting to finally come good now and hopefully will do well long term.
Short term results really become insignificant when you see the long term results eventuate.
Buy well at the time, set and forget, seems to be a basic principle that never fails.

 

It's a bit of both really.

The above IS kind of timing the market. In a buyers market, you're buying while others are not. This means you should get a price and yield on the property. You just then need to hold on. Sometimes it's only a short while, other times not so much.

 

Suppose that's true. Any king of market research when picking a market could be considered timing the market.
I was looking at the topic from the POV of buying in a quickly in a rising market and then exiting when you think the short to medium term grown has been achieved.

 

Yes, there's more than one way to look at things.