The evidence on investment managers’ success with market timing is impressive—and overwhelmingly negative.
—Charles D. Ellis (1937–), Investment Policy, 1985
He that cannot abide a bad market, deserves not a good one.
—John Ray (1627–1705), English Proverbs, 1678
Put all your eggs in one basket and—WATCH THAT BASKET.
—Mark Twain (1835–1910), Pudd’nhead Wilson, 1894
The nightingale which cannot bear the thorn
It is best that it should never speak of the rose.
—Anwar-i-Suhaili, The Lights of Canopus
Common stocks have volatile returns. One consequence of this volatility is that investors historically have suffered negative annual returns approximately 28 percent of the time. Obviously, if there were a way to avoid ...