Thursday, October 27, 2005

Buy And Hold Seldom Works Nowadays



This recent market rout is the perfect example of why a passive buy and hold strategy often does not work in today's trading environment! Anyone who bought maximum oversold Tuesday would now be meaningfully underwater. In fact, anyone who bought the market just as it was rebounding off its lows last week would be barely breaking even. All the volatility and risk but none of the reward or profit!