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How NOT to Prepare for the Market Correction

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Almost everyone believes a stock market correction is inevitable. The financial media whip up a daily frenzy of anxiety by offering conflicting views from “investment pros” on when this correction will occur. Here are some tips for dealing with the “market correction” issue.

Don’t try to time the correction

There is no academic evidence indicating that anyone has the expertise to time the markets. One study looked at the results from 1,557 retail mutual funds to determine whether or not the managers of those funds had market timing ability. The author of the study found no evidence, on average, of any ability to time the market.

If highly paid fund managers, with significant resources, are unable to predict market highs and lows, how do you like your chances?

Read the rest of the article at The Huffington Post.

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