Market timing

Market timing refers to act(s) of investing based on the condition of the market as opposed to personal characteristics. For example, adjusting one's asset allocation toward greater fixed income holdings because the bond market has lost value recently and there is an expectation of a bond market recovery would be an act of market timing. On the other hand, adjusting one's asset allocation toward greater fixed income holdings because it is in one's asset allocation plan to do so (e.g., as one ages), is not an example of market timing.