BTravlin
Full time employment: Posting here.
- Joined
- May 18, 2010
- Messages
- 996
Seems as if someone believes buy and hold doesn't work in today's investing environment.
3 Ways To Avoid Going Off A Stock Market Cliff With The Buy-And-Hold Herd
"But what if an investor were a model of self-discipline? My own research confirms that investors who followed Bogle’s advice to the letter would perform spectacularly during periods of low volatility like we witnessed in the 1980s and 1990s. But you may be surprised by what else I learned: The pattern breaks down as volatility picks up — as it has in recent years.
I ran some numbers myself back in 2011 and reran them recently. I compared the performance since 1979 of a buy-and-hold Bogle adherent to that of an investor who sold off Vanguard’s 500 index fund during significant market corrections, then bought the fund back once the stock market regained momentum. I found that the latter investor — the one who probably slept better at night during the big stock market corrections — garnered higher returns than the investor who stuck with Bogle’s strategy. Mr. Sleepwell’s portfolio did lag a bit during the great bull market of 1982 through 1999, but it more than made up the lost ground in the volatile markets that followed."
3 Ways To Avoid Going Off A Stock Market Cliff With The Buy-And-Hold Herd
"But what if an investor were a model of self-discipline? My own research confirms that investors who followed Bogle’s advice to the letter would perform spectacularly during periods of low volatility like we witnessed in the 1980s and 1990s. But you may be surprised by what else I learned: The pattern breaks down as volatility picks up — as it has in recent years.
I ran some numbers myself back in 2011 and reran them recently. I compared the performance since 1979 of a buy-and-hold Bogle adherent to that of an investor who sold off Vanguard’s 500 index fund during significant market corrections, then bought the fund back once the stock market regained momentum. I found that the latter investor — the one who probably slept better at night during the big stock market corrections — garnered higher returns than the investor who stuck with Bogle’s strategy. Mr. Sleepwell’s portfolio did lag a bit during the great bull market of 1982 through 1999, but it more than made up the lost ground in the volatile markets that followed."