- During the 10-year time period studied, if you invested in the S&P 500 with a buy-and-hold strategy you would have gained a 58% return over the whole period
- If you missed the 10 best days, your 100 would have become only 114 instead of 158, a 28% lower terminal wealth
- If you missed the 10 worst days, your return would have ballooned to 226 instead of 158, which would be 43% higher gain than buy-and-hold
- If you can perfectly time the market on best or worst days, well, great – do it!
- Unfortunately, that’s a darn hard thing to do. For the average investor, it makes sense to stay invested
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