Subject: Question on CAGR when using Timing Signals

Backtests show that these signals do not improve overall rate of return (CAGR). What they do well is reduce volatility - and take you out of the market to avoid situations that in the past have produced major losses (2000-02, 08-09, 2011). They will not catch short term minor market tops or bottoms.


The above text is from the Timing Methods page:

http://mechinvesting.wikidot.c...

Is it to be understood that even though timing methods would keep us out during major losses,
the overall CAGR encompassing such periods is not improved?