Chapter 7. A Three-Pronged Approach to Timing the Markets

We have already discussed a number of stock market timing tools in previous chapters of this book. For example, we have reviewed the tendency of the stock market as a whole to perform best when the NASDAQ Composite leads the New York Stock Exchange in relative strength and during periods of interest rate decline. Public psychology has been explored, as has the best 6 months of the year to own stocks and the best and worst years of the 4-year presidential market cycle (Chapter 1, “The Myth of Buy and Hold”).

I know of no stock market timing tools that are perfect in their performance. I know of several that are useful in tilting the odds in your favor—which is about all that an investor can ...

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