FYI, 40x in 40 years is a 9.8% annual rate of return.  This of course doesn't include the additional interest earned when the money is out of the market.  Does the return include dividends earned while in the market?

    Also from 1961, the Long

    Posted by matt on 12th of Jan 2010 at 07:05 pm

    Also from 1961, the Long only system returned 66 times your money, that is of course without interest.  I can't go back any further than 1961 because the SPX started trading in 1960.  This is about 13.6% per year.

    I am so good with

    Posted by stevedfw on 12th of Jan 2010 at 07:21 pm

    I am so good with that!  Even in this low/no interest enviroment my retirement plan pays 3.8% interest when I am in cash - where I am now, LOL.

    OK so the long/short version of

    Posted by matt on 12th of Jan 2010 at 07:19 pm

    OK so the long/short version of the system going back to 1961returned 129 times your money vs a buy and hold of 17.5 times your money!

    The long only from 1961 returned about 66 times your moneyminus interest you would have gained being in cash.

    Not bad...

    Posted by burkmere on 12th of Jan 2010 at 07:21 pm

    Not bad... Surprised

    no I have no way

    Posted by matt on 12th of Jan 2010 at 05:58 pm

    no I have no way to count for dividend and I didn't count for interest when you were in cash.  However the interest is a good point because for the Long only version of the system, you had a total of 3423 days when you were in cash, so you would have made interest in that time of course. 

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