Beat the Experts With This Simple Market Timing Strategy

Have you heard of the saying "Sell in May and Go Away" but thought nothing of it? Perhaps you should think again. Market timing can play a enormous part in the success of your portfolio. The Buy and Hold approach to your advice for buying stock or following stock option subscription service recommendations may not be sufficient to ensure success for your portfolio.

Over the long term, investing in stocks is still one of the most superior strategies for accumulating wealth. You've probably heard from your parents how their advice for buying stock have soared since they first bought them. As a matter of fact, if you had bought the S&P500 index at the start of 1995 and held to the end of 2006 you would have gained 119%, not bad and it couldn't have been simpler. Perhaps you could have made even more with your own advice for buying stock or stock option subscription service recommendations, however, considering that the S&P500 is still trading lower than it's high in 2000 a lot of patience and sleep-less nights are sometimes part of the deal. A timing model could therefore be a useful tool to help you determine when to get in and out of the market.

While hunting for some advice for buying stock and stock option subscription service recommendations I came across one of these models recently, using that saying "Sell in May and Go Away" and thought I'd take a look. %The results were really intriguing%. For the last 56 years, some months of the year really were better to be in the market than others. That's not all, the most profitable months are grouped together, how convenient.

With this information we can derive a easy market timing method based on 56 years of historical data. (significantly more back-testing than any stock option subscription service service you could find)

We could just buy the market at the beginning of our run of historically proven 'good' months and get rid of them at the conclusion. This easy tactic would have gained 126%, a low 7% more than just buying and holding. It also avoided most of the large drops experienced by the market, producing a much smoother curve of returns. Sure, beating the market by 7% isn't that fantastic. But if we had compounded our account balance each year our model would have returned 20% more than the market, simply by avoiding some of those enormous market drops and giving us with a more constant rate of return.

So, not only have we easily beat the market by 20% by investing in the 'good' months, we have achieved it in only 7 months. The final 5 months of the year %our money can be safely stashed aside%. At the very least for those 5 months that are historically 'bad' we could be a bit more cautious with our advice for buying stock or stock option subscription service recommendations.

An idea to consider then, when our first 'good' month comes around and it is time to invest in the market, could be to find some advice for buying stock recommendations or do some internet investigating on stock option subscription service to gives us some tips to make even more from our 7 months in the market.

Next time you are looking at your advice for buying stock, or thinking about subscribing to a stock option subscription service service consider this easy market timing model to boost your portfolio's return.