Below is a great chart from Putnam, which shows that over the last 15 years, if you missed the top 10 best days of market gains, your return would have gone from 10.66% to only 5.05%.
So, if there are 252 trading days in a year, roughly half of your return came in just 10 out of a total of 3,780 days. Improbable odds at just a 0.02% chance to guess which days those would be.
Even more significant, is if you missed the 30 best days, you would have a negative -1.18% return.
Samuel serves as Senior Vice President, Chief Investment Officer for the Crews family of banks. He manages the individual investment holdings of his clients, including individuals, families, foundations, and institutions throughout the State of Florida. Samuel has been involved in banking since 1996 and has more than 20 years experience working in wealth management.
Investments are not a deposit or other obligation of, or guaranteed by, the bank, are not FDIC insured, not insured by any federal government agency, and are subject to investment risks, including possible loss of principal.
