When Lightning Hits, Do You Have to Be There?
@Tiger_comments:
When the market crashes like a bolt of lightning, do you have the courage to stay in—or even buy amid the panic—to capture the rebound later?What happens to your returns if you miss the biggest up days or the worst down days?Miss the 10 Best Days = Sad 😭Miss the 10 Worst Days = Glad 😊Missing the 10 best days leads to the worst performance."Buy and hold" ranks third in returns, but the gap with the second-best strategy isn't huge.Interestingly, missing both the 10 best and 10 worst days ranks second—suggesting that big gains don’t completely offset the pain of the biggest drops.The top-performing strategy? Missing the 10 worst days.Does that mean the key to outperformance is avoiding major drawdowns while still capturing the big rallies?For most investors, that’s an extremely difficult task