Results 1 to 3 of 3

Thread: Buy and Hold???

  1. 08-02-2006, 02:52 PM #1
    Pilgrim
    Pilgrim is offline Team TSP
    Join Date
    Jul 2004
    Location
    Cleveland, Ohio
    Posts
    514

    Default Buy and Hold???

    Note from Marketwatch column on Aug 2, 2006:

    ---------------------------------------------------
    ....the S&P 500 ended January 1999 at 1,279. Exactly seven and a half years later -- at the end of July 2006 -- the index closed three points lower, at 1,276.

    So while the S&P hasn't been flatlining for seven years, its net change is practically zero.
    -----------------------------------------------------

    How does this help the cause of those who advocate "buy and hold"??
    Trading, in its simplest form, is the process of capturing the disconnect between perception and reality.
    Reply With Quote Reply With Quote

    2.  
  2. 08-02-2006, 05:06 PM #2
    Spaf's Avatar
    Spaf
    Spaf is offline Honorary Hall of Fame Member
    Join Date
    Aug 2004
    Location
    Oklahoma, USA
    Posts
    4,067

    Post Re: Buy and Hold???

    After the stock market crash of 2000, when many lost large sums of money because professional advisors or mutual fund managers didn't protect their portfolio principal, investors chose one of two options--getting out of the market altogether and seeking safety or finding out more about how to manage their own portfolios.
    The concept of buying and holding forever died after the stock crash......
    Trading for Dummies (Michael Griffis and Lita Epstein

    Hey Pilgram, welcome to the board............

    Spaf
    Reply With Quote Reply With Quote
    3.  
  3. 08-02-2006, 05:40 PM #3
    Birchtree's Avatar
    Birchtree
    Birchtree is online now Hall of Fame
    Join Date
    Apr 2005
    Location
    Gainesville, Florida, USA
    Posts
    17,323

    Default Re: Buy and Hold???

    Pilgrim,

    A buy and hold approach to investing requires a certain amout of tolerable sacrifice. If one owns a stock portfolio the strategy of dividend reinvestment can be the saving grace - buy on the lows every three months. With a TSP account it's dollar cost averaging that is beneficial. You avoid all the stormy weather that pops up short term - but if a major hurricane is coming at you, it's best to get out of the way. Most corrections are tolerable to a buy and holder - it's the secular bear market that's dangerous. That's what makes investing so exciting - fear the bull.

    Dennis - permabull #1
    Reply With Quote Reply With Quote
    4.  
« Previous Thread | Next Thread »

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  

Forum Rules

S&P 500 (C fund)
 [Chart]
1d  5d  3m  6m  1y  2y		 Dow Completion (S fund)
 [Chart]
1d  5d  3m  6m  		EFA (I fund)
 [Chart]
1d  5d  3m  6m  1y  2y		 Bonds (F fund)
 [Chart]
1d  5d  3m  6m  1y  2y