Market Timing

Market Timing as a long-term investing opposition strategy, but there was a time when mutual fund managers were making not bed money.

The point is that sometimes the share prices of such funds are not matching to their NAV (Net Asset Value – which is calculated at the market prices of assets hold by a fund). This stimulates managers to try to predict and enjoy probable mismatches.

Until the 2000s, the system was functioning so that mutual funds working in different markets and different time zones, after closing markets, were able to predict the expected change for the next opening. However, because this situation was hurting to long-term investors, new regulations were introduced in the United States, in 2002-2004, closing this arbitrage opportunity.

https://www.investopedia.com/terms/m/markettiming.asp

source:

Financial Markets and Institutions – By Anthony Saunders, Marcia Cornett and Otgo Erhemjamts