market timing

market timing
1. Bloomberg Financial Dictionary
Used in the practice of asset allocation . Based on public information, managers actively decide which stocks, sectors, countries, or asset classes to over or underweight. Market timing takes advantage of a small but important amount of predictability in asset returns. The strategy contrasts with the buy-and-hold strategy in which a portfolio is decided on and held for long periods of time. Market timing is an active rather than passive strategy. Bloomberg Financial Dictionary
2. also: Market Timing (Scandal)
A misnomer synonym used in reference to 2003 mutual fund scandal. The misnomer synonym refers to stale price arbitrage. Bloomberg Financial Dictionary

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market timing UK US noun [U] FINANCE, STOCK MARKET
the methods that investors use to decide when to buy or sell shares, by considering whether prices will increase or fall in the future: »

Market timing can be hugely profitable for institutions such as hedge funds.


Financial and business terms. 2012.

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Look at other dictionaries:

  • Market timing — is the strategy of making buy or sell decisions of financial assets (often stocks) by attempting to predict future market price movements. The prediction may be based on an outlook of market or economic conditions resulting from technical or… …   Wikipedia

  • Market Timing — (engl., freie Übersetzung: „Bester Handelszeitpunkt“) ist ein Fachausdruck im Wertpapierhandel, der oft auch im Zusammenhang mit Late Trading genannt wird und dem Oberbegriff der Zeitzonenarbitrage zugeordnet wird. Market Timing bezeichnet die… …   Deutsch Wikipedia

  • Market Timing — 1. The act of attempting to predict the future direction of the market, typically through the use of technical indicators or economic data. 2. The practice of switching among mutual fund asset classes in an attempt to profit from the changes in… …   Investment dictionary

  • Market timing — Asset allocation in which the investment in the market is increased if one forecasts that the market will outperform T bills. The New York Times Financial Glossary * * * market timing UK US noun [U] FINANCE, STOCK MARKET ► the methods that… …   Financial and business terms

  • Market timing hypothesis — The market timing hypothesis is a theory of how firms and corporations in the economy decide whether to finance their investment with equity or with debt instruments. It is one of many such corporate finance theories, and is often contrasted with …   Wikipedia

  • market timing — An investment strategy based on the forecasting of changes in the direction of market prices. However, there is little evidence to suggest that investors can apply such a strategy systematically and even if it were possible, it would violate the… …   Big dictionary of business and management

  • MARKET TIMING — попытка определить оптимальный момент для покупки и продажи финансовых инструментов на основе анализа рыночных условий …   Глоссарий финансовых и биржевых терминов

  • market timing —   Capacità o intuito professionale di scegliere il momento più adatto per comprare o vendere un determinato titolo e, comunque, l identificazione dei più convenienti punti di ingresso e di uscita dal mercato …   Glossario di economia e finanza

  • Market timing costs — Costs that arise from price movement of the stock during the time of the transaction which is attributed to other activity in the stock. The New York Times Financial Glossary …   Financial and business terms

  • market timing costs — costs that arise from price movement of a stock during a transaction period but attributable to other activity in the stock. Bloomberg Financial Dictionary …   Financial and business terms

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