Profit-taking, market-timing? How to benefit and what to consider.

As we frequently state, historically, 1.) over the long term, 2.) properly selected US market index exchange-traded funds, 3.) held in tax-advantaged accounts, 4.) in an appropriate asset allocation, have been the investors best way for growing savings and are likely to remain so for many years.

Note that talk about the US market Index. Year-to-date as of today, it is down 18.80%. If you have not bought into this bargain territory yet, consider it. The Canadian market is down by less than half of that percentage but the Monday Morning position discourages investing in the Canadian market. The reason for that? Look at the chart below.

At the beginning of 2005 and at the end of 2012, the New York Stock Exchange in the Toronto Stock  Exchange performance was at the same level. However, during that entire eight-year period, the Toronto Stock Exchange was ahead the whole time. The Toronto Stock Exchange!

Trying to time the markets to take advantage of the better performing one is a fool’s errand. Market-timing does not work most of the time. The Monday Morning program discourages it.

With the habits of the Monday morning program, luck hardly matters. Good luck!