ViewRight Advisors challenges the notion that investors must stay fully invested to avoid “missing the best days.” The report shows that extreme gains and losses cluster during volatile bear markets, highlighting how systematic risk management can mitigate drawdowns, preserve compounding, and improve long-term outcomes compared to buy-and-hold.
Rethinking Risk Management and the Myth of “Missing the Best Days”
Vincent Randazzo, Ryan Gorman, Shawn Keel
Research
15 Pages
Key Takeaways
Clustering effect: 18 of the 20 biggest gains and 19 of the 20 worst losses since 1994 occurred below the 200-day moving average.
Volatility drag: A 50% loss requires a 100% gain to recover; limiting drawdowns preserves compounding power.
Risk-managed edge: The Defender Program delivered 15.4% annual returns vs. 10.0% for buy-and-hold, with 25% lower volatility.
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