Part 3/11:
The discussion pivots to a sobering analysis of market behavior, particularly how missing just a handful of the best trading days significantly dampens returns. Drawing from historical data spanning 1995 to 2014, the speaker notes that if an investor missed the ten most lucrative days in the S&P 500 during this period, their returns could have fallen from a strong 10% annual gain to a mere 6%. Missing the twenty top days could erode gains to roughly inflation levels, underscoring how crucial those rare, exceptional days are.