Individual Investors


Kicked in the Tails

Volatile markets create a conundrum for investors. Not only is short-term market timing impossible, but also—perhaps counterintuitively—the best daily returns tend to occur during the rockiest of periods.

Missing those big up-days can trigger feelings of regret, which may suggest a “set it and
forget it” strategy. The data actually support a different conclusion: Step aside during more volatile times.

Over the past 30 years, avoiding extreme performance swings produced higher returns with lower volatility.

1k - January 5, 2016


Source: Bloomberg. Total number of trading days in the period shown: 7,753.
Past performance is not indicative of future results.
The S&P 500® Index is a free-float market capitalization-weighted index of 500 of the largest U.S. companies. The index is calculated on a price return basis. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and is not available for direct investment.
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Past performance is not a guarantee of future results.

Virtus Investment Partners provides this communication as a matter of general information. The opinions stated herein are those of the author and not necessarily the opinions of Virtus, its affiliates or its subadvisers. Portfolio managers at Virtus make investment decisions in accordance with specific client guidelines and restrictions. As a result, client accounts may differ in strategy and composition from the information presented herein. Any facts and statistics quoted are from sources believed to be reliable, but they may be incomplete or condensed and we do not guarantee their accuracy. This communication is not an offer or solicitation to purchase or sell any security, and it is not a research report. Individuals should consult with a qualified financial professional before making any investment decisions.