Quote:
Originally Posted by Table 5
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). |
From a psychological perspective, it's far better to miss the losses than the gains.