Investment strategy involves the key choice between asset classes and types of securities.

Bonds, stocks, real estate, cash, and short-term securities change in comparative values and in potential return as the economic picture changes. Within asset classes, investors weight industry sectors depending on the outlook for the economy and the market. International markets offer the prospect for increased returns, but at an increased risk.

Feature Article: Market Timing Strategies

Market timing sounds easy. These strategies involve moving between risky assets, such as stocks or bonds, and less risky short term securities like Treasury Bills based on "technical", "fundamental" or "quantitative" analyses. Reduced to its core proposition, market timing means "buying low and selling high." Identifying high or "overvalued" versus low or "undervalued" is the complicated thing. Since riskier assets usually have higher returns over longer periods, staying "out of the market" or invested in less-risky short term securities can mean a considerable sacrifice of overall return.
More!

The Financial Pipeline Homepage

Important Disclaimer: The Financial Pipeline does not make investment recommendations. It is a source of general investment information. The site does not necessarily agree with the opinions expressed in articles and does not guarantee the accuracy or usefulness of the materials or services on the site. Investors should consider their actions thoroughly and/or consult their professional advisers prior to taking any investment action.

All materials on the site are the property and copyright of The Financial Pipeline Inc. Use is expressly by permission only!