Market Timing

Market timing is when you jump in and out of the market. It's basically been proven impossible. When people hear that I pulled out of the market last year, they ask me if I'm a market timer. The answer is "no".

There is a difference between market timing and getting out because you for see a terrible economy. About every thirty or forty years, the stock market completely collapses. What precedes this event? Usually stocks trade at high price to earnings ratios and low dividend yields. I have never liked to buy a stock over a PE of 15.

We are in a transformational period. Stocks will be selling at lower PEs and higher dividend yields. We have not reached the bottom!
Holmes