Brandes Institute looks to market timing: opportunities and risks

Analysis of market timing by Wim Antoons, head of Asset Management at Bank Nagelmackers, and member of the External Advisory Board Europe at Brandes Investment Partners, has been published by the Brandes Institute, reaffirming a number of widely held beliefs about the approach, but also noting some subtle differences as to the effects of when market timing is done.

Among the key findings of the research include:

Long-term odds are not in favour of marketing timing strategies

  • It is more important to forecast bull markets correctly than to get bear markets correct
  • A strategy of trying to invest on the ‘best days’ and avoid the ‘worst days’ would be virtually impossible to execute
  • Any market timing strategy is likely to increase both trading and opportunity costs
  • Mutual fund investors have tended to underperform the returns in the funds in which they invest, largely due to poor timing of buy/sell decisions
  • Investors face behavioural challenges in market timing as they tend to be poor forecasters, yet are overconfident in the accuracy of their forecasts
  • In general, market timing is detrimental to a sound and disciplined investment process; any tactical asset allocation (market timing) should be strictly disciplined and limited in scope.

Click here to read the full research: Brandes_Market Timing Paper 2017

For further information on the Brandes Institute, visit


Jonathan Boyd
Editorial Director of Open Door Media Publishing Ltd, and Editor of InvestmentEurope. Jonathan has over two decades of media experience in Japan, Australia, Canada and the UK. Over the past 17 years he has been based in London writing about funds and investments. From editing the newsletter of the Swedish Chamber of Commerce in Japan in the 1990s he now focuses on Nordic markets for InvestmentEurope. Jonathan was awarded Editor of the Year at the Professional Publishers Association (PPA) Independent Publisher Awards 2017. Shortlisted for the same in 2016, he was also shortlisted in 2017 and 2015 for the broader PPA Awards category Editor of the Year (Business Media).

Read more from Jonathan Boyd

Close Window
View the Magazine

I also agree to receive editorial emails from InvestmentEurope
I also agree to receive event communications for InvestmentEurope
I also agree to receive other communications emails from InvestmentEurope
I agree to the terms of service *

You need to fill all required fields!