Strategy Intermediate: Market Timing

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1.
Market timing strategies always outperform the market.
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False. Even the best market timing strategies sometimes underperform the market.
2.
Market timers try to buy high and sell low.
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False. Market timers try to buy low and sell high.
3.
A company that uses market timing to switch its investments among mutual funds is called a timing service.
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True. This is the definition of a timing service.
4.
The indicator that measures average data over time is called the ______.
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Moving average. A moving average covers a period of time.
5.
When you sell short, you hope share prices will _______.
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Fall. You sell short to make money on the falling price of a security.