Missing five best trading days cuts gains to $264,000
A $10,000 investment from 1988 through 2023 grew to $417,995.
Missing just the five best trading days reduced the portfolio to $264,000, a loss of $154,000.
Equity market returns cluster on a small number of days, especially near market bottoms when fear peaks, making it difficult for investors to time entries and exits correctly.
The S&P 500’s performance over the past year highlights the importance of staying invested, as those who sold during the VIX spike near 30 would have missed the recovery.