UBS: ‘Buy low, sell high’ is a fallacy

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• “Buy low, sell high” is a common mantra in stock markets.
• But it’s actually a “fallacy”, argues UBS’ Justin Waring.
• If you wait for the market to dip before buying in, you could miss out on big bull runs.
• It’s much better to just buy stock and hold it for the long-term, he argues.

“‘This time is different’ is not the most dangerous phrase in finance,” according to UBS’ Justin Waring. “That honor goes to ‘buy low, sell high.'”

Waring, Investment Strategist Americas in the Chief Investment Office of UBS’ Wealth Management division, called the phrase a “fallacy” in a note sent to clients this week. Not enough people analyze the phrase, which really only applies to traders and doesn’t offer much help to long-term investors.

See the rest of the story at Business Insider

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