Posts filed under “Investing”

Stock Market Extremes and Portfolio Performance

John Kuran points us to a study on Stock Market Extremes and Portfolio Performance.

click for larger graphic

Bestworst_chart

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.

Source:
Stock Market Extremes and Portfolio Performance
Professor H. Nejat Seyhun, University of  Michigan
(commissioned by Towneley Capital Management)
http://www.towneley.com/html/study.htm

Category: Investing, Markets

An Excuse for Bad Advice

This chart has been used primarily as an excuse for bad investment advice: Source: Marketwatch Why an excuse? It builds in an out for the advice giver: See, you just have to hold onto stocks long enough . . . then you will outperform other asset classes. Now all we need to do is figure…Read More

Category: Books, Investing, Markets

Forward Earnings are Opinions

Category: Investing, Markets

Find Your Trading Edge

Category: Investing, Rules

HedgedFund.org’s Internet Links of Interest:

Category: Finance, Investing, Markets, Psychology, Weblogs

Be Wary of Anything approaching 140% of GDP

Category: Economy, Investing, Markets

Principal Protected Mutual Funds

Category: Investing

Want to Be a Trader?

Category: Investing, Markets, Rules

How to Use Earnings as a Buy Signal

Category: Investing, Markets

Red Flags

Category: Investing