More Light than Shade III
As announced before, we will now turn to investment outcomes in the context of shorter periods of time that do not go further back than 1970. The table below demonstrates that both profits and the chances of profit recede as the period under consideration is shortened. The reason for this is, most likely, the large amount of crashes and recessions (1973, 1978, 1980, 1987, 1997, 1998, 2000, 2008 and 2020).
If investments follow the logic of a long-term strategy, both the average yield and the chance of profit rise dramatically. Making use of the 5%+ method, the chances of profit are higher in the three- and five-year period respectively; this does, however, not apply for a holding period of ten years. Lastly, these observations are valid for the entirety of periods under consideration.
Whatever might drive the reader, we wish you best of luck!
Source of data: The calculations are based on data from www.yahoo.finance.com
