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To: Mang Cheng who wrote (13058)1/9/1998 2:07:00 AM
From: Glenn D. Rudolph  Read Replies (2) | Respond to of 45548
 
Glenn, seems to be an interesting article from IBD, though I don't
really agree with what they say :


It is a good article. I do not agree either, however.

Glenn



To: Mang Cheng who wrote (13058)1/9/1998 10:46:00 AM
From: PMS Witch  Read Replies (2) | Respond to of 45548
 
I was sure this guy was wrong. I remember reading a few years back that being out of the market for the few worst days saved more than the gains from being in the market the best days. I didn't question it at the time: just filed it away in my mind. Your post encouraged me to take another look.

I used the daily closing price of Microsoft for the past 1500 days. and used a spreadsheet to sort the prices in order of greatest rise or decline. It was a simple matter to extract the amounts gained or lost by being either in or out of the market for the biggest swing day. I was surprised to see that the article you posted was correct and that the gaining days outperformed. In fact, there was NO time period that this wasn't the case.

Thank-you for the post. It caused me to take another look and correct a misconception I've held for years. PW.