oday's most widely recommended
investment strategy is buy-and-hold. This is, buy some good stocks or mutual funds, sit
back, and "let it ride". Wouldn't it be great if it were that easy! Unfortunately, the
exaggerated potential of buy and hold investing is more myth than reality.
History of the stock market
The more you study the history of
the stock market, the more you begin to understand the real dangers of buy-and-hold
investing. A single bear market can destroy a large portion of your accumulated assets.
Unfortunately, mutual fund companies, the popular financial press, and even some
professional investment advisors, have convinced the majority of investors to accept the
"let it ride" philosophy. Do they need to be reminded that, on average, bear markets come
along every four or five years?
Nobel Laureate Paul A. Samuelson
states, "The longer you own stocks, the greater risk of a devastating loss". Most investors
have forgotten, or were too young to recall, the pain of the last big decline. Bear markets
have slashed portfolio values an average of 37%. However, there have been declines of -86%,
-54%, and -48% during this century!
In terms of real dollars, had you
invested $100,000 in the stock market in January of 1973, your investment would have shrunk
to $51,800 in just 21 months - a loss of -48%. Assuming you were able to continue your
buy-and-hold strategy, you would have waited another seven and a half years just to break
even! Sick over their losses, most buy-and-hold investors eventually give up and bail out.
And who can blame them.
Successful investing in the stock
market takes more than a single decision to buy a mutual fund or stock. It requires many
important adjustments as market conditions change. Optimistic predictions from the
so-called experts of Wall Street make interesting commentary, but do little to protect
your assets when the stock market falls.
We do not pretend to
know the future. But we know that buy-and-hold investing will not preserve your assets
in the next market decline. The performance of our market timing system through the use of
our signals is gaining popularity across the Internet. Our system is designed to help
members continually beat the buy-and-hold strategy. At StockMarketTiming.com, LLC, we
are committed in helping our members profit no matter what the future of the market has in
store for us, whether bullish or bearish times.
Please, take advantage
of our system by joining now.
