Thursday, 17 September 2009

The importance of Timing the Market

The importance of Timing the Market

I'd posted this article some time back - Just got a feedback from one of the readers that the graph/picture that I was referring to is not visible. I've reloaded the same and the graph is now clear and visible.

More importantly, the markets have gone up quite a bit since the last time I posted anything on this blog. Hence, one could claim that this article has even greater relevance now.

Do take a look:

To repeat, the whole thing just goes to show the importance of:

  • Periodically booking profits, especially in over-valued scrips / mutual funds when the markets are overheated and quoting at crazy PE ratios
  • Choosing the dividend payout option in mutual funds
  • And keep investing the surplus generated from the above two steps in cash-equivalents to be converted into shares / mutual fund units when the appropriate opportunity arises.

Regards,

N


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