The rules of market timing are simple:
- Buy when the market is low and go long. Buying long-term contracts in down markets ensures advantageous rates, along with budget certainty and protection against significant upward market swings.
- If you must buy when the market is high, go short to ride out market volatility.
- Don’t wait until the last minute, or you’ll severely limit your options. Start pricing your next contract 12-18 months before your current contract expires.
Q: Since any buyer can buy directly from any supplier, why use a broker?
A: Because the only way to get the best price is to create competition between and among suppliers – ideally every supplier – and that’s the broker’s job.
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