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Stock Market Extremes and Portfolio Performance
Posted By Barry Ritholtz On March 25, 2005 @ 6:04 am In Investing,Markets | Comments Disabled
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)
Article printed from The Big Picture: http://www.ritholtz.com/blog
URL to article: http://www.ritholtz.com/blog/2005/03/stock-market-extremes-and-portfolio-performance/
URLs in this post:
 Image: http://bigpicture.typepad.com/.shared/image.html?/photos/uncategorized/bestworst_chart.gif
 Towneley Market Timing Study: http://www.towneley.com/html/study.htm
 DWA: http://184.108.40.206/cgi-bin/foxweb.exe/welcome
 Jeremy Siegel: http://bigpicture.typepad.com/comments/2005/03/excuse_for_bad_.html
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