Is this market timing?

[Spanky]

An article in the June edition of Smartmoney suggests converting long-term bond investment to money market as interest rate rises. For the equity portion, the article suggests tilting more toward sectors such as consumer staples, drug and biotech. The author asserts that this is not market timing but a defensive against inflation. What do you think?

Spanky

 

[cute fuzzy bunny]

Thats what I would call market timing.

You're doing something in anticipation of something.

I moved some money out of wellesley just prior to the fed starting its rate hikes. Wellesley went up, not down. What I moved the money into went down, not up.

However while the 'dirty market timing' devil has already been proven to be bad most of the time, I think sometimes...not often but sometimes...you have to make a move on the basis of a major event or obvious situation. I'm talking nasdaq 5000, 9/11 sorts of things. Although you're probably an idiot for buying long term bonds or bond funds right now without a good reason. The sector tilts on paper might be good ideas. In reality...who knows?

 

[Spanky]

TH,

I concur that this is market timing. The author also suggests getting rid of REITs.

Spanky

 

[cute fuzzy bunny]

I wouldnt get rid of them, but I wouldnt be a buyer right now either.