market timing investment & finance definition
A
strategy used by some investors when deciding whether to buy or sell
securities. Investors look at current trends such as interest rates, market
volatility, and expectations for an industry and then predict how stock prices
will respond.
See market timing in Wall Street Words
The purchase and sale of securities based on short-term price patterns as well as on asset values. Some analysts use fundamental analysis to select the securities to purchase or sell; then they rely on market timing to decide when to trade those securities. Also called timing.
Is market timing best left to the experts, or can I use it when determining when to buy or sell securities?
To put it bluntly, the most important investment advice for the serious investor is that it is “time in the market,” not “timing the market,” that is the key to long-term successful investing.
George Riles, First Vice President and Resident Manager, Merrill Lynch, Albany, GA
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