Mutual Fund Market Timing Newsletters:

Mutual Fund Market Timing Newsletters, in spite what the Mutual Funds Industry lead you to believe (See Market Timing: A Modern Day Witch Hunt ) are one of the most conservative ways to invest using mutual funds. They are not always 100% in stocks or 100% in Cash. There are various letters that will issue signals and suggest percentages to be invested or multiple models that issue signals at different times. The basic premise within these letters is to buy a market that is in an up trend and exit markets in a down trend. They believe that at certain points in time, the market will decline. By avoiding the decline, the investor can protect their gains and principal, wait for a lower risk, rising trend market and then add profits while the rest of investors are working to regain what they have lost. The most important element in market timing is avoiding the time lost in Bear Markets. By timing out of declining markets these subscribers reduce their risk. Market Timing studies have shown that with Market Timing risk (time exposed to the market) can be reduced and rewards increased.

Unlike Asset Allocation or Mutual Fund Switching, Sector Investing Newsletters, Market Timing letters will recommend 100% cash position from time to time, this alone causes unsteady heartbeats in the commission driven brokerage industry. Again, there have been Market Timing studies calculating the benefits of missing the worst market days, even at the expense of the best market days and they show conclusively that market timing not only reduces risk but increases overall profit.

Many, if not most, Mutual Fund Market Timing letters concentrate exclusively on the stock market. This can mean long periods of inactivity when the stocks are weak. There are others that track many of the various asset classes and offer asset allocation based on the market timing approach. Rather than a blanket across the asset classes like traditional Asset Allocation Newsletters or buying into the strongest of declining funds like Fund Switching, Sector Investing, Sector Investing Newsletters, the Market Timing approach with still only point to asset classes that warrant a buy signal due to an upward trend.

Mutual Fund Market Timing Newsletters, however, take extra amounts of discipline to follow. Often when the markets are at their bleakest, after a prolonged decline, they issue their buy signals. As well as when the markets appear to be heading for the moon, they can issue a sell signal.

Market Timing Newsletters have Market Timing Models that issue buy and sell signals for a particular market. There are essentially two different types of Market Timing Models, Predictive Models and Trend Following Models and their risks differ significantly. Of the two the Trend Following Models are more conservative.

The greatest benefits of Market Timing Newsletters come in the forms principal protection, reduced anxiety and increased liquidity. The detriment is the series of losses most timing models suffer in flat or range bound markets. This series of losses, called whipsaws, can add up but are the price the Market Timer must face to avoid the devastating declines that all other investment strategies suffer.