I’ve posted Entry #577 to my weekly Valuation-Informed Indexing column at the Value Walk site. It’s called Buy-and-Hold Is a Bad Idea Because Markets Must Be Flexible to Function.
Juicy Excerpt: We have public service commercials to encourage good behavior in other fields of life endeavor to stop people from throwing cigarette butts on the ground and from taking narcotics to relieve life’s pains. What if we did that in the stock investing realm?
Only YOU can prevent bull markets.
Please market time until it hurts.
A financial freedom dream is a terrible thing to waste.
The retirement plan you save may be your own.
Keep America valuation-informed.
This is your brain. This is your brain on Buy-and-Hold. Any questions?
“At the prices that apply today, the most likely annualized return is a negative 0.5 percent.”
Do you mean the most likely 10 year return?
Given the age of my wife and I, our investment horizon is about 30-40 years.
Do you know the most likely annualized return for stocks and bonds for a 30-40 year period?
If you go out 30 years, the most likely annualized return is a bit over 5 percent real.
Rob
“If you go out 30 years, the most likely annualized return is a bit over 5 percent real.”
Sounds like a very strong endorsement of investing in stocks.
Stocks are my favorite asset class, Evidence. It’s not a close call,
Rob