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Buy and hold works well when the portfolio is well defined. The applicable portfolio is the universe of financial assets, not just American stocks and bonds.
Oct 24 13:16 pm
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All Comments by American in Paris »Global Markets in Review: Risky Assets Disconnect from Fundamentals [View article]
Those of us who have 20% to 30% in cheap emerging market index funds are quite happy.
It's takes 15 to 20 years of continuous stock picking to isolate true talent from noise.
Not encouraging for stock pickers ....
On Oct 19 12:29 PM Value Added wrote:
> Buy and hold has performed worse than that, my friend. You wrote:
>
> "The Dow first broke above 10,000 more than ten years ago in 1999
> and has since done so on 26 occasions. Yes, a ten-year buy-and-hold
> index investor has had no capital gain over the period!" This neglects
> inflation, so in fact buy and hold has *lost* you more than 25% (official
> CPI). In reality, because CPI tends to under-report, you've probably
> lost more than that.
>
> The only way to beat the market is to identify winning horses early
> in the stretch. Index investing is a losing proposition.