hardie plank siding best siding install vinyl siding lakemoor hardie siding siding installation niles .. 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:

Index Fund Trading Using Technical Analysis and Swing Trading Strategies

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

Money, Insanity and Wall Street

Money: the most charged word in the planet. It means... Read More

Investment Clubs

Because you don't feel too sure about which stock or... Read More

Trade Stocks for Real

I read a comment by a forum member on another... Read More

Stealth Bull

If you have been watching the stock market at all... Read More

Value Investing: Selecting From The Bargain Bin

Picking a beaten-down stock requires a different kind of selection... Read More

Discover the Retirement Breakthrough the Federal Government Created for You - The Roth IRA!

If you don't know what a Roth IRA is then... Read More

Box Of Chocolates

Ever have one of those sample boxes of candy? Each... Read More

Choosing a Stock Broker

If you were to find that you had some severe... Read More

A Stock Market Investment Plan that Never Lets You Down

The bulls and bears of the stock market are both... Read More

Tips to Finding Other People?s Simple Trading Plans

Did you know you can make money (and a lot... Read More

How Much Money Can I Make With Trading? What Account Size Do I Need To Start?

What account size do I need?How much money can I... Read More

NASDAQ 800?

In November of 2000 when the NASDAQ was trading at... Read More

Dividends

When is a dividend not a dividend?The latest thing "conservative"... Read More

The 401(K): How The Insider Has Stolen Your Retirement!

Mutual funds were moderately successful in creating a presence in... Read More

What is Involved in Peak Performance Trading?

There is so much involved in developing peak performance, that... Read More

Jack and Jill

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

One Way Street

Ever turn down a street, get half way and suddenly... Read More

How We Eluded The Bear Of 2000

The date October 13, 2000 will forever be embedded in... Read More

Successful Trading ? Taking Profits - Part 1

So you're started trading, you bought some positions with your... Read More

I Love You, Warren Buffet

Sometime around 1980, can't remember exactly, there was a flight... Read More

Zero Sum Game

Most people think the stock market is a zero sum... Read More

Lemmings Are Gathering

Before they go over the cliff to their destruction these... Read More

Economists #2

Economists know more about how the fragments of society work... Read More

Bull or Bear?

Cat or dog? Maybe Zebra. Shucks, I don't know, but... Read More

street lighting fixtures philips induction lighting Pete's produce ..
street lighting fixtures philips induction lighting Pete's produce ..