The article explores how to use predictions of future market returns to reduce investment risk and increase returns. Unlike previous studies, this research focuses on the benefits of a market-timing strategy for risk-averse investors. It shows that the usual way of measuring risk and return in a portfolio is not enough when timing the market. By considering factors like market volatility, forecast accuracy, and investor risk tolerance, the study demonstrates the added value of a market-timing approach in achieving higher returns with lower risk.