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Buy and Hold is Bulls**t!!

April 27th, 2009 | No Comments | Posted in Education, Finance, Investment

Found a great article about the famously advirtised buy and hold strategy, just passing this one along.

Even during rip-roaring bull markets, investors miss a good chunk of the gains. Buy and hold RIP.

The recent 57% collapse in the S&P 500 index to its most recent low on March 9 followed hard upon the 38% decline in the 2000-2002 bear market. And the five-year recovery from that swoon didn’t exceed the 2000 peak by much. The Nasdaq index, which nosedived 78% in 2000-2002, recovered only 44% of that decline before falling another 55%. There are only two other global bear markets since 1900 in which stocks fell over 40%.

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