Market Timing

COMMENT POSTED IN MY BLOG

Mr. Tan, you seem to be an advocate of market timing, from most of your postings. Investors following your advice are in great danger. I think, Mr. Tan, you need to get your understanding of investment right.

Despite your many years as a CEO of Income and to be fair to you, your knowledge of investment is horrendous.

You better stick to insurance. Even in this area I also find your recommendations not appropiate sometimes. You have great knowledge in products but not planning.

You are sincere, there is no doubt at all. but this is not enough. Hope you take this in good spirit of sharing.

----------------------------------------------

REPLY

I posted a study by Plexus Asset Management. It showed the experience over the past 100 years in the United States. For a investor who made an investment at a time of high market P/E ratio, the return over the next 10 years is lower than for other periods.

If you wish to ignore this study, it is all right. In my case, I prefer to avoid investing a lump sum at a time when the market is high. I prefer to wait for a more normal time. It is all right, if you make small monthly investments, and take take advantage of "averaging".