Trying to time the market is a fool’s errand.
If you missed the market’s 10 best days over the past 30 years, your returns would have been cut in half. And missing the best 30 days would have reduced your returns by an astonishing 83%.
There are 252 trading days in 1 year; in 30 years, there are 7,560 trading days.
As an investor, you had a 0.13% chance of correctly anticipating the 10 most profitable days with a 99.86% chance of missing out on 50% of returns.
You had a 0.39% chance of correctly anticipating the 30 most profitable days with a 99.61% chance of missing out on 83% of returns.
Clearly, the best risk-adjusted method for optimal return on investment is time in the market, not timing the market.
https://t.co/vZoEWZnh3R
Blake / ₿lake
npub172…kaz2l
2024-09-02 19:50:05
Author Public Key
npub17299xmlwlxqv455ysf7pys3kl8jpez28galckr60phldvjpdcwvskkaz2lPublished at
2024-09-02 19:50:05Event JSON
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"content": "Trying to time the market is a fool’s errand. \n\nIf you missed the market’s 10 best days over the past 30 years, your returns would have been cut in half. And missing the best 30 days would have reduced your returns by an astonishing 83%.\n\nThere are 252 trading days in 1 year; in 30 years, there are 7,560 trading days.\n\nAs an investor, you had a 0.13% chance of correctly anticipating the 10 most profitable days with a 99.86% chance of missing out on 50% of returns.\n\nYou had a 0.39% chance of correctly anticipating the 30 most profitable days with a 99.61% chance of missing out on 83% of returns.\n\nClearly, the best risk-adjusted method for optimal return on investment is time in the market, not timing the market. \n\nhttps://t.co/vZoEWZnh3R",
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