Just For Thinking ...
But ....
Real People. Real Story!
When Uncle8888 looked closer at the above chart; he tends to agree that Buy and Hold is Dead!
Why?
Over the last six years of riding over market cycles of Bulls and Bears from 11 Oct 2007 to 29 Nov 2013, there is nothing in his portfolio to shout about it!
Not much growth!
Right?
But, on second thought ...
Assuming Uncle8888 is very passive with his portfolio; then Buy and Hold is Dead! As after six years, his portfolio value hasn't changed much since the last Oct 2007 Bull Market.
But, he is not that passive with his portfolio management.
His outcome of Buy and Hold is not really Dead yet!
And looking at the same story with a different picture will change his storyline a little ...
Look at his current War Chest for the next Bear, it is bigger than the War Chest in Jan 2000 when he became deadly serious in studying for his BSc (Stock Market).
Is Buy and Hold Dead Again?
Uncle8888 will tell you in 2016/17?
Buy and hold only works if you buy during crisis and sell during bull times.
ReplyDeleteNot many people practice this nowadays, given the temptations made by media.
I am not vested in any stocks today. Just don't see any value in local stock market.
Regards,
www.sgwealthbuilder.com
Sometimes, we have to consider "A bird in your hands is worth 2 in the bush".
ReplyDeleteWhy?
You at least are sure of doing something with the bird in your hands. ( aka Shares converted to cash)
Can we be sure of the birds in the bush? (money still in the market as shares).
This is then like B&H compare to B&H&S then B&H&S.
i am not implying short term trading.
i am encouraging "Long Term B & H & S" trading.