Market timing: why you should stick to your guns

Trying to time the market is a mug's game, says Cris Sholto Heaton. When it comes to investing, you're much better off sticking to the plan.

Recently, I was at a conference where a 30-year veteran of the investment business was talking about the need to be flexible. No investment strategy works all the time, he said. Value investing (buying companies that look cheap on metrics such as price/book and dividend yield) has beaten growth investing (buying firms that are forecast to have higher earnings growth) over the long term, but has had periods of underperformance.

The last few years have been notably tough on it, as were the late 1990s. So people need to adapt to market conditions rather than stick to the same approach.

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Cris Sholto Heaton

Cris Sholto Heaton is an investment analyst and writer who has been contributing to MoneyWeek since 2006 and was managing editor of the magazine between 2016 and 2018. He is especially interested in international investing, believing many investors still focus too much on their home markets and that it pays to take advantage of all the opportunities the world offers. He often writes about Asian equities, international income and global asset allocation.

Cris began his career in financial services consultancy at PwC and Lane Clark & Peacock, before an abrupt change of direction into oil, gas and energy at Petroleum Economist and Platts and subsequently into investment research and writing. In addition to his articles for MoneyWeek, he also works with a number of asset managers, consultancies and financial information providers.

He holds the Chartered Financial Analyst designation and the Investment Management Certificate, as well as degrees in finance and mathematics. He has also studied acting, film-making and photography, and strongly suspects that an awareness of what makes a compelling story is just as important for understanding markets as any amount of qualifications.