Value Investing 7: The Question of Timing
By Philip Mause: By its very nature, value investing tends to be at odds with timing strategies or "technical analysis" which attempts to discern the twists and turns of the market. There is the famous value investing mantra that "in the short term the market is a voting mechanism; in the long term the market is a weighing mechanism." However, the events of the last 12 years(the 2000-01 crash, the 2008-09 crash, the flash crash, and the last few weeks) make it almost impossible for an investor to ignore timing considerations. In an account with any kind of margin, a mistake in timing can lead to a wipe out. Even in unmargined accounts, enormous amounts of money can be gained or lost depending on the timing of purchases and sales. I am going to digress for a moment and describe a useful spectrum along which to organize the universe of possible investments. ForComplete Story »
- Original article
- Login or register to post comments
