6 min
S1E4: Why "Buy and Hold" Is the Most Dangerous Investment Strategy Conservative Wealth Advice
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- Investing
Buy and Hold advocates often cite the 'Best Days' argument in support of the Buy and Hold strategy. They produce statistics intended to show that a large proportion of the Stock Market's total gains are contained in just a handful of days. Therefore, advocates of the 'Best Days' argument are in effect saying that in order to get the benefit of the best days, you must be fully invested during Bear Markets, since that's when most best days occur. In this episode we explore why 'Buy and Hold' is the most dangerous yet widely implemented investment strategy.
Buy and Hold advocates often cite the 'Best Days' argument in support of the Buy and Hold strategy. They produce statistics intended to show that a large proportion of the Stock Market's total gains are contained in just a handful of days. Therefore, advocates of the 'Best Days' argument are in effect saying that in order to get the benefit of the best days, you must be fully invested during Bear Markets, since that's when most best days occur. In this episode we explore why 'Buy and Hold' is the most dangerous yet widely implemented investment strategy.
6 min