John Husselbee: The perils of trying to time the market

'5% of months determined performance'

clock • 5 min read

One of the clearest lessons from history is that trying to time moves in and out of markets to catch the peaks and troughs rarely works, says John Husselbee - and yet so many investors still try to beat the odds

A common saying in investment circles goes that timing the market is a fool's game, whereas time in the market - ie keeping your money invested - will typically lead to solid results. And, to that end, new research from Morningstar makes this point in the starkest possible terms. In response to the question ‘is there a good time to buy or sell actively managed funds?', the report concludes with a resounding no, based on the fact most equity performance over multiple decades has come down to just a few months. Being out of the market for these so-called critical months can have a massive ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Multi-Asset

Multi-asset funds: A whole new ball game?

Multi-asset funds: A whole new ball game?

'The growing appetite for multi-asset funds underlines the attractions of being an all-rounder'

Sheldon MacDonald
clock 14 April 2025 • 4 min read
Marlborough broadens multi-asset fund range and lowers charges

Marlborough broadens multi-asset fund range and lowers charges

Group predicts multi-asset fund popularity return

Jenna Brown
clock 31 March 2025 • 2 min read
SJP gives £4.6bn multi-asset management mandate to Royal London

SJP gives £4.6bn multi-asset management mandate to Royal London

Follows Schroders picking up SRE fund from Impax

Jen Frost
clock 26 February 2025 • 2 min read