Note my 5 stages of grief meme has taken hold:
The five stages of death are denial, anger, bargaining, depression and finally, acceptance. We bring it up, because right now, Wall Street is really struggling with that last one, acceptance.
We’re talking about the death of that time honored investment strategy, buy-and-hold. Investors just can’t let go, and they need to.
Thanks to black October, the S&P 500 has now lost a fifth of its value over the last 10 years. According to Jeff Macke, “2008 is the year that will go down in history as the year that long term investment died as a thesis.”
And that means it’s time to move on.
But just because buy-and-hold is pretty much dead and buried, that doesn’t mean you can’t make money anymore.
The Death of Buy and Hold
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.