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Hedge Fund
Market Timing Success Is Elusive Because Of Concentrated Stock Returns
February 2020
February 5, 2020
Market Timing Success is Elusive Because of Concentrated Stock Returns
By Robert Zuccaro, CFA
The highest returns in the stock market tend to be concentrated in small intervals of time, whether the intervals are days or months. According to a study conducted by Birinyi Associates on missing the best five days each year during 1966-2001, an investor would have lost 85% of their investment of $1,000 in the S&P 500 Index. Hence, it would have been reduced to $150. On the other han