Market Timing Techniques: Its Use by Practitioners of Money Management

Abstract

This study examines how practitioners actually manage money. We surveyed five thousand people asking them whether they use fundamental analysis, or technical analysis, or whether they let the markets do the work for them in an efficiency hypothesis approach. Most of them do not rely on the efficiency view, that is, utilize an index way to investing. The majority, by a wide margin, uses either fundamental, or technical analysis. Furthermore, we asked them whether they follow stock picking, or sector rotation, or market timing. The paper additionally elaborates on the detailed tools the practitioners consider in investing according to the market timing technique.