Market Timing

Market timing is the belief held by some investors and traders that future market directions can be predicted, usually by economic data or more commonly used technical analysis.

Some active traders believe that the market can be timed, while many investors and academics believe it is a futile process, and use indexing instead. It is hard to say whether not market timing is possible, but for investors with little time to spend on investing, market timing may not be a preferable strategy.

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