Market timing

Market timing refers to any strategy that involves trying to predict future price movements and shifting between different investments to take advantage of them.

Market timing refers to any strategy that involves trying to predict future price movements and shifting between different investments to take advantage of them. 

To take a simple example, if you believe that shares are likely to fall and bonds to rise over the next month, you would buy bonds and sell shares. You would only intend to hold these positions for as long as you think bonds will keep beating shares: as soon as you think the trend will reverse, you would buy shares and sell bonds. 

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