12/25/2025
Market Timing is the high-risk endeavor of predicting future market movements to buy at the bottom and sell at the top. This is generally discouraged for retail investors as it requires perfect foresight, but tactical traders use technical analysis and macroeconomic models to attempt it. A milder form involves shifting asset allocation based on the economic cycle (e.g., increasing equities in early expansion and bonds in late expansion). Success is extremely difficult and often eroded by transaction costs.