John Kuran points us to a study on Stock Market Extremes and Portfolio Performance.
click for larger graphic
Graphic courtesy Towneley Market Timing Study
While one frequently hears T-Heads mentioning how performance drops if/when investors miss the best periods in the market, one rarely hears mention of missing the worst. I recall Tom Dorsey (of DWA) discussing this some years ago.
Note that same market index performance of 12% per year (discussed prior via Jeremy Siegel) requires a very long duration to assure that level of performance.
Stock Market Extremes and Portfolio Performance
Professor H. Nejat Seyhun, University of Michigan
(commissioned by Towneley Capital Management)
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.