The investor’s dream is to time the sale of a company's stocks to maximise profit.
Many industry professionals claim it is impossible. As an alternative, they promote the use of collective investment vehicles based on saving a fixed monthly amount.
This produces what is known as pound cost averaging: some months your regular amount will buy you more if prices are low, some months less if prices are high.
But if it is impossible to time a purchase or a sale, surely active managers who charge fees for doing just that should be consigned to the dustbin of history? Instead, they win awards at industry gatherings.