hgtv small bathrooms kitchen cabinet additions suburban tract home 1960 addition exterior mobile home kitchen remodel adding a room to your house lakewood .. Chicago Drug testing

Buy and Hold Investment Strategy

"Buy and hold" is one of the most heralded investment strategies promoted today. "Buy and hold" is also one of the few investment methods where you are guaranteed to lose money 2 out of every 5 years...so why do it?

Before expanding on the questionable value of "buy and hold", it's probably best to take a deeper look into who's spending their millions of dollars of marketing money convincing you that "buy and hold" is the best idea and why.

"Buy and Hold" Promoters

"Buy and hold" promoters vary but I'm going to single out the mutual fund( http://www.stockrhythms.com/investing-in-mutual-funds.htm ) companies at this point since they seem to have the deepest advertising pockets and are highly visible in their promotion of "buy and hold".

Mutual funds have a strong vested interest in having you buy into the "buy and hold" mentality since their entire business model depends upon the average investor keeping their money parked...through good times and bad.

Remember, the mutual fund companies are earning a profit from your investment even while you are accepting losses!

So "buy and hold" is really the greatest investment strategy available, it's just a matter of perspective. If you like that your mutual fund company profits while the Bear Market ravages your account value, then "buy and hold" is for you!

So let's look at some data to see how this really works.

"Buy and Hold" Facts

Between 1929 and 2002, there have been 14 Bear Markets with an average of 39% slashed off the value of stocks. During this 74 year period, it took an average of 3.5 years to return to breakeven!

Every time a "buy and hold" investor loses money in a down market, they lose invaluable time to reaching their financial goal. After eliminating overlapping Bear Markets, 41 years were spent suffering through a Bear Market or returning to break even.

In other words, "buy and hold" investors spend 2/3 of their time just to break even!

"Buy and Hold" Myths

My favorite myth or scare tactic used by investment gurus is; "buy and hold" investing is critical since you cannot afford to miss the bull run when it hits. And they go on to cite what happens to those that miss the "big days".

Ah...good point, what does happen? If you would have invested $100 in 1926 and just left it there until 1993, your investment would have climbed to $80,000. Conversely, if you had tried to time the market and missed the 30 best months, your investment would have only been worth $1,200.

"Buy and Hold" Does Work Better?

So I've just convinced you that "buy and hold" does work better right? But what would have happened if you used market timing and missed the 30 best months and missed the 30 worst months? Your investment would now be worth $120,000 or 50% more than simple "buy and hold".

Not to get too carried away but if you had avoided the 30 worst months and still managed to hit the 30 best months, your investment would have increased to an astronomical $8,600,000. Now I'm not going to try to convince you that market timing is going to hit every winner and miss every loser but I also don't think it's fair for the "buy and hold" advocates to represent only one side of the equation to their benefit either.

"Buy and hold" is a guaranteed method of losing money during every Bear Market. Give yourself a fighting chance by looking at a better way to invest.

"Buy and Hold" Replacement

So how do you avoid losing money every Bear Market with "buy and hold"? The simple answer is "get out of the stock market when it's the Bears turn". Of course, that's usually harder to do than to say.

This is where we can help you to become a better stock market investor. Not only are we going to show you how to avoid the Bear Market losses, we're going to show you how to profit from the Bull Market and then turn around and profit from the Bear Market.

And I'm not talking about extreme market timing, I'm talking about a conservative, time tested investment process.

A Better Investment Plan

There is a better way to position yourself for a higher probability of investment profits than extreme market timing( http://www.stockrhythms.com/market-timing.htm )or passive "buy and hold". One that has been tested and proven with over 74 Years of Stock Market Research! Our proprietary Olympic Ring( http://www.stockrhythms.com/how_it_works.htm ) investment system has been issuing profitable trading signals, trade after trade, year after year, and we can start doing it for you too!

Maximize your returns while lowering your overall risk through the use of a highly scientific and emotion free system. And unlike the "buy and hold" investment plan, you'll be positioned to profit from the Bear Market and the Bull Market. Now won't that be a change!

Let us show you a better way to invest!

Call us(toll free: 877-554-4800) today to learn how we can help you earn a profit in both directions. Or download a FREE COPY of our stock market investment book( http://www.stockrhythms.com/mutual-fund-book.htm ) so you can learn from the past to earn in the future - Invest With History

----------------------------------------------
This article was originally published at: http://www.stockrhythms.com/buy-and-hold.htm

Copyright: www.StockRhythms.com

You can reproduce this article as long as you leave this copy right statement unchanged.
----------------------------------------------

Gary J
Sr. Managing Director
VerticalMarketing,LLC
sudha@stockrhythms.com
http://www.stockrhythms.com

In The News:

Long-Term Investment In Todays Market?

The stock market is very unstable at this time going... Read More

Investment Research - The Dalbar Study

Very few people, even professionals, have heard of the Dalbar... Read More

Starbucks Stock is Up

Starbucks earnings are up again and so is their stock... Read More

Price to Earnings Ratio - P/E

After finding the price of a particular stock, usually the... Read More

Shorting Stocks ? The Basics, Part I of II

What does it mean to short a stock?This means that... Read More

Never Fall In Love!

Recently I watched my favorite football team lose a vital... Read More

Its Snowing

The Winter Games for the Olympics are coming up soon... Read More

High Price/Earnings Ratios and the Stock Market: a Personal Odyssey

After some forty years of banking and investments, I retired... Read More

Index Fund Trading Using Technical Analysis and Swing Trading Strategies

Index Fund Trading can be one of the most profitable...or... Read More

Its Better

Question: How does it get better when it gets worse?Last... Read More

What To Buy Now

I am sure that if you have a brokerage account... Read More

How to Short Stocks? How to Make Money when Your Stocks Go Down by Shorting

The stock market can present you with a lot of... Read More

Investing in the Stock Market

From the book 'The Stockopoly Plan' by the author Charles... Read More

War Market

There is no question that the stock market is being... Read More

How to Evaluate Load vs. No Load Mutual Funds

If you have been dealing with mutual funds for any... Read More

The Big Bad Bear

The big bad bear is stirring again. So far he... Read More

Stock Market Diversification

In one of my previous articles (Investing in the stock... Read More

Swing Trading Strategies

Using Swing Trading Strategies and Technical Analysis when Trading Stocks... Read More

The Inside Scoop on Mutual Fund Rip Offs

The bear market that showed up at the end of... Read More

Direction

It is difficult to make money in a bull market,... Read More

Analysts - Do They Really Know The Stock Market?

When you become interested in a stock or mutual fund... Read More

KISS Formula

There are formulas for just about everything, but it has... Read More

Trading Tips No 5: Stock Trading Curve Drawdown and Commitment

All stock trading and investing methods must deal with the... Read More

Jack and Jill

Jack and Jill went up the hill to fetch a... Read More

Do You Know What is the Single MOST Critical Mistake in Trading the Stock Market??

Well maybe that's overstating it a little, but it's certainly... Read More

led manufacturer induction lights Pete's produce ..
led manufacturer induction lights Pete's produce ..