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Strategies & Market Trends : The New Economy and its Winners -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (19425)	1/28/2004 7:28:17 PM
From: Lizzie Tudor	Respond to of 57684

Say No to Market Timing Shedding some very useful light on the question is a study conducted by University of Michigan finance professor H. Nejat Seyhun for Towneley Capital Management. Here are some of his findings: If you invested in the stock market from 1963 through 1993, it would have yielded an average annual return of 11.83%. That should seem pretty good. But, here's the amazing part. The period of 1963 through 1993 includes 7,802 days. If you were out of the market (not invested in it) for the 10 days when the market rose the most, your average annual return would only be 10.17%. If you sat out the 30 best days, your return would plunge to 8%. Up that to the 90 best days, and you're down to a mere 3.28%. Most of the market's gains seem to occur on just a few days. This means anyone who tries to time the market is at risk of missing out on substantial gains. While some will suggest that there are dangerous times to be in the market, it's probably more dangerous to be out of it. biz.yahoo.com