People really believe this about LTB&H? 2023-05-04
This "Market Timing's Toll" graphic was posted yesterday on LinkedIn. It is typically and erroneously used to attempt to validate Long Term Buy & Hold. There may be reasons to LTB&H but this is not one of them.
My response:
0% chance one misses the xx best days while hitting the xx worst days. The chart is incomplete at best and misleading at worst.
Some seek to validate Long Term Buy and Hold by pointing out the “cost” of missing the xx best days in the market.
This makes the faulty assumption that it is possible to benefit from the best days while missing the worst days.
Spoiler alert: it is not.
This makes the faulty assumption that it is possible to benefit from the best days while missing the worst days.
Spoiler alert: it is not.
The Best and Worst Market Days Cluster
This is summarized for the S&P 500 for 2000-01-03 through 2023-03-31 (per the above graphic) in the attached which I posted on LinkedIn as a follow-up.