Market Timing

Coast Wealth Management believes that attempts to try to “time the market” by moving into and out of stocks to avoid periods of negative performance are mostly futile and counterproductive. 

There is an overwhelming amount of evidence which indicates that consistently making accurate near-term forecasts of a market’s direction is extremely improbable.  Attempting to do so can be costly and very inefficient when expenses and taxes are considered as well.  The equity markets tend to have brief ups and downs that can sometimes generate a majority of the performance for a given year in one quarter or even one month.  Being out of the market during a large uptrend or a few ill-timed decisions can undo years worth of saving.  As long-term investors, we coach our clients to accept and tolerate short-term volatility as a natural occurrence of the market.