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The Maginot Line of investing: Why market timing rarely wins

Mint MoneyThe Maginot Line of investing: Why market timing rarely wins Saurabh Mittal4 min read6 Jan 2026, 11:28 AM ISTDecide your equity exposure based on goals, risk tolerance, and time horizon.(Pixabay)SummaryInvestors chase market timing to avoid crashes, but even perfect execution delivers limited gains. History shows discipline and asset allocation beat prediction and panic. In the years between World War I and World War II, France built what it believed was an impenetrable defensive barrier — the Maginot Line. A sprawling network of bunkers, artillery, and tunnels along its border with Germany, it was designed to prevent a repeat of trench warfare. The Maginot Line was state-of-the-art, lavishly funded — and strategically flawed.

The Maginot Line of investing: Why market timing rarely wins

Credit: Livemint

Key Highlights

  • When Germany invaded in 1940, it simply went around the fortifications through Belgium. That is what happens when you prepare for the last war. And that is exactly what many investors do when they try to time the market. Also Read | Springboard 2026 | Where's smart money in India heading to in 2026?The timing trapAsk anyone who has sold equities “just in time” to avoid a crash, and they will tell you how hard it is to do it twice.
  • Selling is only the first step.
  • The second — getting back in — is often even harder. A few realities investors underestimate:You will likely get the timing wrong.
  • It is not enough to predict a fall.
  • You must also predict when it happens and how deep it will be. If markets keep rising after you sell, the emotional stress is real.
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Sources

  1. The Maginot Line of investing: Why market timing rarely wins

This quick summary is automatically generated using AI based on reports from multiple news sources. The content has not been reviewed or verified by humans. For complete details, accuracy, and context, please refer to the original published articles.

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