Nor is it ever going to be a market timer
The profits that accrue to the market timers
are raked from those that would otherwise be distributed among ordinary long-term investors.
Redemption fees were historically used across the mutual fund industry to discourage market timers
, but improvements in technology and pricing practices have reduced the risk.
tend to be lousy investors, and numerous studies show that they underperform those who buy and hold," says Kevin Brosious, a Pennsylvania-based, fee-only certified financial planner and public accountant.
They show that, two or three years after the offering, there is no significant difference between the leverage ratios of market timers
and other firms.
In some cases, that recovery has represented missed opportunities to recuperate much of what was lost." Bottom line: A University of Michigan study found that, over a 30-year period, market timers
averaged an annual return of 3.28% whereas long-term-minded investors averaged 11.83% per year.
SOME PEOPLE SAY THE MARKET TIMERS
ruined it for everybody.
However, the overwhelming evidence is that even professional market timers
cannot consistently outperform the market.
He was ranked one of the "Top Ten Stock Market Timers
" (including a #1 ranking).
This and many other studies have shown that market timers
do not beat the market.
"Fund companies are becoming much more active in keeping market timers
out, fairly valuing securities and improving compliance and disclosure," said Russel Kinnel, director of fund analysis for Morningstar Inc.
It is clear in each of the cases under investigation that board members had not been informed of the shady activities of either market timers
or the fund managers' efforts to facilitate their questionable activities.