Why most of us should diversify-- Warren Buffett

[haha]

Malkiel cites a study done by Charles Ellis that shows that between 1982 and 2000, if an investor missed the best 30 days of the market the return on an investment in the S&P500 would be 11.2% rather than 18%. Meaning that you can't tell when the best days of the market will be so trying to time the bottom often doesn't get the desired result.
--Rita

Notice the dates of this "study". This could not have been more rigged to produce the desired results.

Ha

 

[al_bundy]

it's not very scientific since you dont' look at when the days occured. depending on when you buy and sell you can beat those numbers even if you miss every big up day. the secret as always is control your losses

 

[FinanceDude]

Notice the dates of this "study". This could not have been more rigged to produce the desired results.
Ha

Most studies like this use the "longest bull market in recent history" to make their claims. Actually, imagine if it went 1982-1999....even "better"........

 

[bots2019]

Sure, the timeframe might be cherrypicked to show the greatest impact.

But if you took the best 30 days out of any 19 year period, the results should decrease dramatically (even if you used 64-82).

 

[al_bundy]

Malkiel cites a study done by Charles Ellis that shows that between 1982 and 2000, if an investor missed the best 30 days of the market the return on an investment in the S&P500 would be 11.2% rather than 18%. Meaning that you can't tell when the best days of the market will be so trying to time the bottom often doesn't get the desired result.
--Rita

finally someone posted this for me
Bear Mountain Bull » Up the Down Staircase

most of the market's best days are in a bear market so if you miss them, it shouldn't hurt your returns that much, if at all

 

[unclemick]

Hmmm - like I had a choice - once a month - 401k, 500Index, plus the company contribution, 1977-1992 - aka the horse I rode in on.

Today - full auto aka Target Retirement for real money.

Now for fun money - since you get in trouble looking over people's shoulders when they play cards - I can Google up what Warren buys, pssst Wellesley top ten, and a few others and buy when I have some petty cash. No rebalancing, DCA, theory stuff.

The Norwegian widow takes her dividends and we dump em when we don't like the company anymore or more likely when they merge or go private.

Two last year -Keyspan and New Plan Realty.

heh heh heh - Usually if they stay in business I keep em - even turds who cut their div.'s like AETNA and Union Pacific.