MarketWatch Asks if it's Time for Market Timers

Excerpted from MarketWatch

March 17, 2010
Investment Newsletter Insights

Time for Market Timers

By Ari Charney, Portfolio Analyst

Although market timers often proclaim their ability to prosper during both bull and bear markets, the Hulbert Financial Digest has found that market timing systems tend to do best during bear markets. That's because timing systems have a tendency to go to cash, which is extraordinarily helpful during bear markets, particularly the most recent one. Unfortunately, that same tendency to go to cash can significantly reduce returns during bull markets.

As an example, Cabot China & Emerging Markets Report used its proprietary "China-Timer" to sidestep much of the recent bear market, which enabled Cabot to lose substantially less than the overall market despite the fact that it focuses on especially risky stocks. Over the trailing 12-months, however, Cabot's performance has significantly lagged the subsequent bull market. Nevertheless, Peter Brimelow notes that Cabot's market timing combined with its fundamental stock selection has still led it to trounce the market over the past five years. 

Link to full story

Cabot China & Emerging Markets Report 
More Cabot in the News
Cabot Home
Sign up for free Cabot Wealth Advisory e-newsletter

Headline News

Stock Picks

Loews Corp.

This undervalued stock has strong future earnings growth expectations.

Biogen

Biogen is the market-share leader in treating multiple sclerosis.

Weibo

One of Paul Godwin’s favorite stocks in his Cabot Emerging Markets Investor portfolio.

Cabot Wealth Advisory

Tesla Model 3 vs. Chevy Bolt: Which Affordable Electric Car Is Better?

By Timothy Lutts on September 26, 2016

The Tesla Model 3 and Chevy Bolt are the first two affordable electric cars with a driving range of more than 200 miles. Let’s see how they stack up - and what they could mean to Tesla Motors (TSLA) and General Motors (GM) stock. Read More >

Does Alibaba (BABA) Stock Measure Up to Amazon (AMZN)?

By Paul Goodwin on September 23, 2016

Alibaba (BABA) is the Amazon (AMZN) of China. But does BABA stock measure up to AMZN stock? Let’s break it down!Read More >

As Stock Market Trends Change, Invest in these New Leaders

By Michael Cintolo on September 22, 2016

History tells us that all stock market trends change, and if you don’t recognize the leaders of that change early, you risk missing out on the next big winners.Read More >