Tuesday, 13 November 2012

Market timing v Fundamentals

Traditionally i've tended to buy into falling markets that have then continued to fall (the classic attempt to catch a falling knife).

I'm looking to increase my equities holdings at the moment and i'm making a conscious effort to wait for a good entry point, in anticipation of market weakness over the coming weeks.  In saying that, given that i plan to hold and accumulate assets, i will try to adapt my mindset focusing less on short term timing and more on the fundamentals of the investment.

When facing a period of market uncertainty, i like the idea of building positions. This gives the flexibility to reduce the average entry cost in a falling market, and the ability to more fully commit should confidence and strength return.

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