Investment Series: Buy and Hold is Not Dead

The Blog Entry that Accompanies this Vlog is at: http://investorandtrader.blogspot.com/2009/06/investment-series-buy-and-hold-...

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The market is down! The market is down! Buy and Hold is dead! Buy and hold is dead! Warren Buffett is a hack!

I've heard statements like this, and others since this bear market (which so many of us knew was coming). But does this mean that Buy and Hold is dead?

NOTE: This is not an investment or trading recommendation. The losses in trading can be very real, and depending on the investment vehicle, can exceed your initial investment. I am not a licensed trading or investment adviser, or financial planner. But I do have 13 years of experience in trading and investing in these markets. The Challenge accounts are run for the education of other traders who should make their own decisions based off their own research and risk tolerance

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[norris4245]

How have you been doing lately? The friggin Dow has crossed 10,000 88 times since 2000. What a freak show. I love it when guys like Vangaurd tell middle America to just hang in there. Then tells them to recalculate their retirement years cause they were essentially WRONG AGAIN.

[AirelonTrading]

@norris4245 Dividend Investing accounts? Year to date? On smaller accounts - they are about flat to up about 1% - which means I'm only beating the market by about 9%. Not great.

Trading accounts though? I'm kicking butt there this year. I'm up about 44% thusfar.

[norris4245]

Are you a trader or a fund manager or an RIA or what exactly are you?

I can't figure it out. I read the book Buy and Hold is Dead (again) by Ken Solow recently.  You should too. And then we will get back together.

He also has some good Youtube slots. Check it out.

Keep it up!

[AirelonTrading]

@norris4245 Ah ... I see the confusion.

I'm a professional trader who runs my own money. Similar to Matt Davio or G Simmons (Scopelabs)

[norris4245]

You say buy and hold is not dead. Are you saying that because people do it or are you saying that because it is a salient strategy? I'm not sure what you are trying to get accross here at all. What do you mean by "credit markets"? Bond markets? What?

[AirelonTrading]

@norris4245 It's the concept of buying and holding dividend bearing stocks. I wouldn't buy a mutual fund if my life depended on it (Generally, my management and skills is FAR beyond that of most fund managers, besides I revolt at the idea of having to pay a fee for anything, beyond comissions). But "buy and hold" has reference to buying stocks, and holding them for extended period.

And yeah, the "credit markets" are also known as the bond markets

[TearsOfPuppys]

Nice to know you're a Guinness drinker Dan! I guess great minds drink alike.

[AirelonTrading]

@norris4245 And the second part would be - At times, you have to make decisions based on certain assumptions - aka - the stock market will remain here ( I could make money regardless - along the theme of my entries "Trading for a Living" and "Trading for a Living without being a Trader" )

If the stock market is no longer there? I have a lot bigger problems on my hands than worrying about my portfolio strategy breaking down for the first time in years

[AirelonTrading]

@norris4245 Why in the name of God would I be holding a mutual fund?

[norris4245]

So when Fidelity dumps everything, and you are holding on to an entire portfolio of Fidelity Mutuals waiting for that miraculous comeback, (assuming you have time to wait with), what are you going to come back into the market with? Your silver? You are not going to buy and hold your silver anymore? Wait - how do you keep your powder dry if Fidelity is dumping everything and you have such complete confidence in the market. Isn't that close to a prediction? Are you now predicting?