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Missing/Avoiding the Best & Worst Days of S&P500 from 1993 to 2010

Assuming that you can avoid the 10 worst days, you will have to do so in a way that does not have you missing the 10 best days. If you manage to avoid all of the worst days, but miss all of the best days too, then your portfolio performance will be close to buy & hold (minus transaction costs).
Pension Partners, LLC, September 2010
Michael A. Gayed

Buy and Hold, 10 Best Days Removed, 10 Worst Days Removed vs. 10 Best and 10 Worst Days Removed: 1993 - 2010

Key takes:

  • The 10 best days account for 50% of the buy and hold performance
  • Missing the 10 Best Days gives up more than 50% of the Buy & Hold performance
  • If you manage to avoid the 10 Worst Days, your portfolio  more than doubles the Buy & Hold performance