First of all, the poll to the right is still open --->
We've gone over this in technical circles ad nauseum but John Bollinger posted the following in a technical chat room this week and it is crystal clear. Unless you think we are in a secular bull market - that means like 1982-2000 - then this is for you.
All you money managers and RIAs - take note. Now you can tell your clients how you add value.
"What happens if you miss the best and/or worst days?"
(study period, most recent 20 years )
All days, $100 invested at the open of 1990 becomes $304.33
Miss the best 200 days and $100 becomes 87 cents
Miss the worst 200 days and $100 becomes $134,251.48 <---(hello! do you see this?)
Miss both the best and worst days and $100 becomes $385.53
For me (meaning Bollinger) the most surprising result is that missing both the best and worst days is better than buy and hold.