Quote:
Originally Posted by Slava
No offence intended, but I laugh every time I hear this "best days" information. I mean sure, that is true. But because those stats take place during those terrible times, those best days are after the precipitous fall. So yeah, it would suck to miss that big day (which is like 2-3%, and a massive move upward), but not dropping that 15% first is a bigger impact.
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Indeed, over the long run it's better off missing the 10 worst days, then being in the market for the 10 best days. Those 10 best days almost always come right after a big drop. Financial institutions love the "10 best days" and "in the market" chestnuts, as it keeps the fees coming in. There are no fees when clients are sitting in cash.
Obviously timing either is an impossible task, but I think there's nothing wrong with reducing some risk right now (especially if it helps people sleep better at night).