Monday, July 25, 2011

The virtue of patience

Interesting: over the recent more or less 10 years (5000 sessions), anyone patient enough - i.e. ready to hold his position open over up to 250 sessions - who invested in the S&P500 index, would have lost a maximum of 4,1%, even that the market took a two huge dives in that period:


Legend:
black line - return at the end of 250 days period
blue line - maximum return over a 250 days period
red line - maximum loss over a 250 days period

Of course, he would have to close his position at the right moment... ;)

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