Attempting to invest based on predictions of short-term fluctuations in an investment market is called
A)buy-and-hold investing.
B)market timing.
C)market seeking.
D)passive investing.

Question

Quizplus · Accepted Answer

Market timing is the practice of trying to predict short-term changes in the market to make investment decisions. This strategy is often used by active traders who believe they can benefit from short-term fluctuations. However, it is widely debated whether market timing is a reliable strategy, and many financial experts advocate for a buy-and-hold approach or passive investing instead. Market seeking and passive investing are not relevant to the given scenario.

Attempting to Invest Based on Predictions of Short-Term Fluctuations in an Investment