Topic: How To Invest

What is Pat's commentary for the week of April 17, 2012?

Article Excerpt

A couple of weeks ago in this space, I said that if you want to add value to your investing, one of the least productive things to do is to try to “time” the market. By that, I meant attempting to sell good stocks at what looks to you like a price peak, in hopes of buying them back at lower prices. Rather than improving your results, market timing is likely to cost you money, in the long run if not in the short. You can find lots of promoters and ads that argue otherwise. They will assure you that their chart services, computer programs and training courses are able to produce extraordinarily profitable buy and sell signals. Of course, if you issue enough random buy and sell signals, some are bound to turn out right. But profits on the “good” calls are likely to fall short of losses on the “bad” calls, and brokerage commissions will simply expand your losses. I’ve…