FYI: Everyone agrees that it’s appropriate to divide the space of a portfolio between different asset classes–to put, for example, 60% of a portfolio’s space into equities, and 40% of its space into fixed income. “Market Timing” does the same thing, except with time. It divides the time of a portfolio between different asset classes, in an effort to take advantage of the times in which those asset classes tend to produce the highest returns.
What’s so controversial about the idea of splitting the time of a portfolio between different asset classes, as we might do with a portfolio’s space? Why do the respected experts on investing almost unanimously discourage it?
Regards,
Ted
http://www.philosophicaleconomics.com/2016/01/movingaverage/
