8/10/13

Is Buy And Hold A Good Investment Strategy?


“Buy and Hold” is an investment strategy that deals with the long-term financial market giving positive return rates despite the decline of the market. This strategy also involves the idea that short term marketing influences people to try the “buy and hold” strategy. There has been a lot of debate in the financial industry as to whether or not this strategy is a good one.

Though it has faced a lot of controversy in the past, there is documented historical data that states that the buy and hold strategy actually works when it comes to equities. However, it takes awhile for this process to happen. This approach is very compatible with the stock market, provided you are willing to wait one or two decades for it to happen.

It has been stated that if you use the buy and hold strategy in conjunction with any stocks you own you should expect to end up losing money over the course of a fiscal year. When you are no longer losing money in the deal you will most likely make back roughly 10% of your investment. This will come with a small amount of risk that most people feel is worth it. This applies to a traditional buy and hold portfolio that was created by either a pension fund or an insurance company.

Buy and hold portfolios are usually made up of 40% of bonds and 60% of stocks. This standard investment is offered to any investor that has spent several decades proving their financial worth.

The money gained by participating in the buy and hold strategy can help you supplement your income. It brings in revenue that you would not be getting otherwise. It is easy to accurately predict how much revenue can be generated by using the buy and hold strategy. However, this investment strategy will never net you as much money as you would get by investing in the stock market.

Investors that are close to retirement age, or have already reached it, have preferences for portfolios that offer a greater percentage on the bonds over the typical 60/40 buy and hold investment strategy. This strategy would likely net you 10% in profits throughout the years, but at that point it may no longer fit the financial needs you had when you were younger.

While some financial experts disagree, most feel that buy and hold is a good investment strategy for the right person or the right company. There is a lot of evidence that this can be a very good investment for a large percentage of the population. It appears to be a better investment for younger people than it is for older people because older people are at a different financial place in their life. This type of investment strategy has repeatedly been used in a positive matter by many people. It has made a difference in the lives of a lot of people and it has helped them make investments
This informative article was written and brought to you on behalf of Cambist.
“Buy and Hold” is an investment strategy that deals with the long-term financial market giving positive return rates despite the decline of the market. This strategy also involves the idea that short term marketing influences people to try the “buy and hold” strategy. There has been a lot of debate in the financial industry as to whether or not this strategy is a good one.

Though it has faced a lot of controversy in the past, there is documented historical data that states that the buy and hold strategy actually works when it comes to equities. However, it takes awhile for this process to happen. This approach is very compatible with the stock market, provided you are willing to wait one or two decades for it to happen.

It has been stated that if you use the buy and hold strategy in conjunction with any stocks you own you should expect to end up losing money over the course of a fiscal year. When you are no longer losing money in the deal you will most likely make back roughly 10% of your investment. This will come with a small amount of risk that most people feel is worth it. This applies to a traditional buy and hold portfolio that was created by either a pension fund or an insurance company.

Buy and hold portfolios are usually made up of 40% of bonds and 60% of stocks. This standard investment is offered to any investor that has spent several decades proving their financial worth.

The money gained by participating in the buy and hold strategy can help you supplement your income. It brings in revenue that you would not be getting otherwise. It is easy to accurately predict how much revenue can be generated by using the buy and hold strategy. However, this investment strategy will never net you as much money as you would get by investing in the stock market.

Investors that are close to retirement age, or have already reached it, have preferences for portfolios that offer a greater percentage on the bonds over the typical 60/40 buy and hold investment strategy. This strategy would likely net you 10% in profits throughout the years, but at that point it may no longer fit the financial needs you had when you were younger.

While some financial experts disagree, most feel that buy and hold is a good investment strategy for the right person or the right company. There is a lot of evidence that this can be a very good investment for a large percentage of the population. It appears to be a better investment for younger people than it is for older people because older people are at a different financial place in their life. This type of investment strategy has repeatedly been used in a positive matter by many people. It has made a difference in the lives of a lot of people and it has helped them make investments
This informative article was written and brought to you on behalf of Cambist.

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