Nice chart here from Scarlet Fu on Bloomberg Surveillance showing the S&P 500’s returns in total compared to missing the 3 and 5 best days of each year. As you can see, the returns suffer enormously when you’re not in the market on the 3 and 5 best days. Of course, this also implies an all equity allocation and doesn’t take into account the potential for better risk adjusted returns by missing the negative days, but it’s interesting nonetheless.
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