Kitchen Timers, Market Timers, and Time (Part 1)

Is market timing possible?

Global Market Update - Kitchen Timer
Source: Amazon

Market timing has a bad reputation. We associate it with shady characters. But we use timing lots of ways. We time our commutes, we use kitchen timers. Why should stocks and bonds be different?

I started out as a bond trader for a bank. I still have my old trade blotter, where I entered my positions and their profits or losses. It was a tough job. Every day I would come in, stare at my screens, and buy or sell. A good call could make my month. And bad news could wipe that out.

It’s hard to buy and sell profitably. Because of the way the market works, you have to be right more than 2/3rds of the time. It offers potentially huge rewards, but they’re mostly a mirage, fading away before they’re reached. The safest market call is the one J.P. Morgan once made: “The market will fluctuate.”

Douglas R. Tengdin, CFA
Chief Investment Officer
Phone: 603-224-1350
Leave a comment if you have any questions—I read them all!

Follow me on Twitter @GlobalMarketUpd •
By |2017-07-17T12:23:03+00:00February 18th, 2015|Global Market Update|0 Comments

About the Author:

Mr. Tengdin is the Chief Investment Officer at Charter Trust Company and author of “The Global Market Update”. The audio version of each post can be heard on radio stations throughout New England every weekday. Mr. Tengdin graduated from Dartmouth College, Magna Cum Laude. He received his Master of Arts from Trinity Divinity School, Magna Cum Laude and received his Chartered Financial Analyst (CFA) designation in 1992. Mr. Tengdin has been managing investment portfolios for over 30 years, working for Bank of Boston, State Street Global Advisors, Citibank – Tunisia, and Banknorth Group. Throughout his career, Mr. Tengdin has emphasized helping clients manage their financial risks in difficult environments where they can profit from investing in diverse assets in diverse settings. - Leave a comment if you have any questions—I read them all! - And Follow me on Twitter @GlobalMarketUpd

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