Chilling Sentence of the Day

From David Merkel:

But here’s the result for the S&P 500 Spider, January 1993- September 2011. Time-weighted return: 7.09%/year. Dollar-weighted: 0.01%/yr. Gap: 7%/yr+

Put another way, most of the money comes in at the peaks and then leaves in the troughs. Put yet another way, everyone buys high and sells low.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s