4:48 am December 2, 2010, by Henry Unger
I was struck yesterday by a key investment principle that sometimes comes under attack by so-called “experts” who think they can time the stock market.
All of a sudden, after nearly two weeks of losses, the Dow Jones industrial average soars 250 points — closing more than 2 percent higher Wednesday.
What’s going to happen today? And what about Friday when the unemployment report comes out?
After nearly 30 years as a business journalist, I can say without equivocation that I don’t have a clue. And I don’t know who does.
Most of the gains in the stock market in any one year are made in 10 or 20 particular days, according to several studies I’ve read over the years. But picking those specific days out of 365 is impossible, in my view.
If you’re in the market, please beware of “timing strategies” and “experts.” There are not a lot of Warren Buffetts running around among market timers.
- Henry Unger, The Biz Beat
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