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The best days in the stock market makes up a Huge portion of returns
By Investment Moats  •  July 4, 2015
The following data is from Dimensional Fund Advisors in the USA. From 1970 to 2013 the USA S&P 500 index  compounded 10.40% per annum. However, if you missed out some of the best days of the stock market, your returns will look drastically different. Missed out the best day is ok, but missed out the best 5 days, 15 days, 25 days and your returns are possibly 60% of what you could have garnered. The lesson learnt here is that, it is probably very difficult to know when the best days will occur (and some of them are probably in the deepest end of the bear market) and missing out on them can be rather detrimental to your eventual wealth. This adds another plus point to staying in the market.
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By Investment Moats
Investment Moats is set up by Kyith Ng and have been around since 2005. He aims to share his experiences making sense of money, how money works and ways to grow his money. It hopes that by sharing his experiences, both good and bad, season investors can advice and critique his decisions and new investors can learn from them and find their own style ...
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