 let me make myself clear
Market timing doesn't always work and alot of academics are against it. However, lets say you were a growth investor and only a growth investor in 1999 and you stayed in growth until today. You would be very deep in the hole. There are times when it is clear and its time to reduce risk. We pulled almost 80% of the funds we manage out to cash and extreme value during the 2000 2001 period and stayed breakeven through the recession.
My firm generally is a conservative manager. However when the market begins to strengthen and the economy is there to support it then adding risk by adding growth stocks and or funds makes sense. When the market weakens we try to move more conservative. If you don't try to hit the absolute peaks and valleys market timing in a conservative sense works very well.
Peter
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