I’ve posted my second Guest Blog Entry at the Arbor Investment Planner blog. It’s called Asset Allocation Advisors Cause Financial Crisis.
Juicy Excerpt: There is no study supporting Buy-and-Hold. The idea that academic research supports this approach is a myth. People really do believe in it; both experts and ordinary investors. But they don’t believe in it because of a study they have read. They believe in it because experts endorse it and because it is rarely challenged.
We have created a Catch-22 situation. Buy-and-Hold cannot be questioned because “everyone” knows it works. But everyone knows it works only because they have never heard it effectively questioned. What if “everyone” just happens to be wrong?