Can You Time the Market With MPF?

What did a 2011 “MPF Insights” column say?

A friend’s MPF secret was “buy low, sell high” — constantly watching markets and switching strategy; but nobody owns a crystal ball, and timing the perfect entry and exit is mission impossible. Markets are forward-looking: the bottom comes when things look worst, and by the time official data confirms recovery the rally is old; investors chasing the bounce have missed the best days. Stop-loss traders hopping in and out think they ride ups and dodge downs, but long-run value suffers; staying invested captures every bear-to-bull turn.

Why does dollar-cost averaging help?

MPF invests fixed sums regularly: low prices buy more units, high prices fewer, while earlier units appreciate — lowering risk.

When should you adjust?

Not on market mood but on your risk tolerance and years to retirement; near retirement, never go all-equities. Before adjusting, check MPF fund comparison.