photoguy
Thinks s/he gets paid by the post
- Joined
- Jun 15, 2010
- Messages
- 2,301
I suppose we're using "market timing" differently. I'm using it to mean:
A. changing your total asset allocation in response to some economic indicator. In this case, the indicator is "market value of the long term portion of my total asset portfolio".
You're using it to mean:
B. changing your total asset allocation based on a belief that you have a better crystal ball than other investors.
I've always though of "market timing" as definition B -- i.e. changes in asset allocation due to some prediction of the future market directions.
If you use definition A, wouldn't pretty much every form of rebalancing be market timing?
Suppose I buy and sell solely to maintain a fixed asset allocation. I would not call that "market timing".
But isn't this based on market values as per your indicator in example A?