Abstract

Wall Street would have investors believe that if they “miss the 10 best days” of the stock market that their investment returns will be lower. Though an investor who buys and holds may reap the benefits of “the best 10 days,” they may also suffer through “the worst 10 days.” Alternative analysis yielded actionable observations. That is, during bear markets, the best and worst days tended to cluster together. If investors had successfully reduced their exposure to periods of increased market volatility, then they would have avoided large portions of bear markets during The Period. This research paper will attempt to show that the buy and hold theory is flawed, and present a counter argument that could be the basis for an alternative strategy.

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