I’ve posted Entry #5 in my weekly Beyond Buy-and-Hold column at the Out of Your Rut site. It’s called Why the Experts Don’t Tell the Truth About Stock Investing.
Juicy Excerpt: There’s a fear of lawsuits. The mistakes made by the Buy-and-Holders were not deliberate. The reality is that our understanding of how stock investing works is today primitive and that the Buy-and-Holders advanced the ball in many important ways. Still, mistakes were made and those mistakes are likely going to cause millions of people to suffer failed retirements. Can those who promoted Buy-and-Hold be held financially liable? No one knows the answer to this question. Many would prefer that the question not even be brought to the table. So there is little enthusiasm among experts for seeing the failings of Buy-and-Hold publicly examined.
Juicy Comment #1: There are always two sides to every trade. Somebody profits when the “buy and hold” investor loses. Those profits have a tendency to be disproportionate because there are so many lazy people who will NEVER pay attention on the other side of the trade. There are some very wealthy traders (like Goldman Sachs as a whole) who are very happy stealing money from these people.
Juicy Comment #2: It is our understanding TIPs are correlated to the Consumer Price Index. We don’t have a tremendous amount of respect for that index as it has been monkeyed with to obscure reality just like the unemployment figures have been manipulated…and the gov’t has the audacity to point their crooked fingers at Enron.