Wouldn?t it be nice to have the clairvoyance to be out of stocks on the market?s worst days? You know, be a market timer with superb predictive accuracy? We did a test of the results of such a talented investor. Using the S&P 500 Index, our nimble hypothetical investor managed to avoid the worst market day each year from January 1, 1992 to March 31, 2012. Result: he compiled a 12.42% annualized return (including reinvestment of dividends and capital gains) during the 20+ years, sufficient to compound a $10,000 investment into $107,100 (see graph).
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