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.