Tuesday Link-Ups: 12-22-2015 Market Timing

I like reading John Rekenthaler’s articles on Morningstar – even though I rarely agree with him on indexing or timing the market.

I don’t try to time the market – but I do invest more in equities when they are cheaper – and pull back exposure as they get more expensive – I think this makes sense, and in John’s latest article we actually find some common ground:

• Morningstar – The Case for Market Timing

Worth a read – also, the concentration of investors in S&P 500 Index Funds and ETFs in 2015 has led to historically shallow market breadth:

• Business Insider – The stock market’s breadth is unusually shallow

Reminds me of the Nifty 50 stock craze of the 70s – which did not end well.  Long story short – when everyone is investing in the same concentrated way for an extended period of time – pushing valuations well above normal – it might make sense to look at contrarian ideas.

We shall see how many of these adopters of S&P 500 indexing behave during the next severe market down turn – I think I already know the answer.