Lump Sum Investing
Posted: Mon Aug 09, 2004 12:35 am
Old European
Unable to post a reply in the forum where you originally posted.
Your assertion that there may be an advantage to investing in funds experiencing a drawdown has some merit. I have been told that some professional fund managers specifically seek out established, profitable funds when they are in a drawdown. Plenty to choose from now !!!
I have recently completed a study of the S&P 500 for the past 20 years to find the best month in which to invest an annual lump sum. For the S&P500 the highest total 20-year returns would have come from an annual one-time investment made every year during the third week of September. Early October came a close second.
As an interesting aside I found during this study that the ratio of 21-day periods that were Up to 21-day periods that were down was 1.61, the Golden Ratio.
Just a coincidence I'm sure but no doubt the Fib fans will appreciate it !
Unable to post a reply in the forum where you originally posted.
Your assertion that there may be an advantage to investing in funds experiencing a drawdown has some merit. I have been told that some professional fund managers specifically seek out established, profitable funds when they are in a drawdown. Plenty to choose from now !!!
I have recently completed a study of the S&P 500 for the past 20 years to find the best month in which to invest an annual lump sum. For the S&P500 the highest total 20-year returns would have come from an annual one-time investment made every year during the third week of September. Early October came a close second.
As an interesting aside I found during this study that the ratio of 21-day periods that were Up to 21-day periods that were down was 1.61, the Golden Ratio.
Just a coincidence I'm sure but no doubt the Fib fans will appreciate it !