How much would the stock market make in a year if every daily rise AND fall were recorded as a rise?
For example -say it was up on Monday .32% and down Tuesday .44%, but you recorded both as 'up'. By the end of the year, it ought to show a profit of what... ~120% or something? But it actually only makes ~9% or so because of how evenly balanced the ups/downs are?
I'm just curious to compare how much the market moves/fluctuates vs. what it ends up actually making per year.
Is the short cut to just use the volatility and avg. return (somehow)?
I'm trying to get the best feel I can for how the market moves. Like -
How much does it move on avg. per day up or down? and -
How many days is the Market open? ~250 a year?
Anyone else ever think about these facts/statistics?
If you're near/at retirement, you know you typically see a gain or loss of thousands of dollars every day, yet you mostly ignore it 'cuz you know it only balances out to a tiny actual gain per day. I'd just like to know what the diff. really is, rather than 'a way LOT vs. a tiny bit'.