The Best 10 Days Myth
download the presentation
The best 10 days rule is the concept that missing just the 10 best days in the stock market dramatically reduces your long-term return – and we think it’s a strawman argument.
Strawman Argument: an intentionally misrepresented proposition that is proposed because it is easier to defeat than an opponent's real argument.
To dig into the strawman nature of the argument by using data, we compared the impact of buying and holding the S&P 500 Index versus missing only the 10 best days.
We think our test showed that what complicates the matter is that the argument is technically true – missing ONLY the top 10 BEST days did reduce return. But this is not the whole story of this strawman.
Blueprint Investment Partners is an investment adviser registered under the Investment Advisers Act of 1940. Registration as an investment adviser does not imply any level of skill or training. The oral and written communications of an adviser provide you with information about which you determine to hire or retain an adviser. For more information please visit adviserinfo.sec.gov and search for our firm name.
Past performance is not indicative of future results. The material above has been provided for informational purposes only and is not intended as legal or investment advice or a recommendation of any particular security or strategy. The investment strategy and themes discussed herein may be unsuitable for investors depending on their specific investment objectives and financial situation.
Information obtained from third-party sources is believed to be reliable though its accuracy is not guaranteed.
Opinions expressed in this commentary reflect subjective judgments of the author based on conditions at the time of writing and are subject to change without notice.
No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission from Blueprint.
An index is an unmanaged portfolio of specific securities, the performance of which is often used as a benchmark in judging the relative performance of certain asset classes. Investors cannot invest directly in an index. An index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the performance shown.