Brandes Institute: Does “Buy and Hold” Still Work?

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Dec 02, 2009
Research article from Brandes Institute: In the wake of market turmoil over the last two years, many investors may feel the need to change their approach and be more “nimble” or “opportunistic” in their pursuit of investment goals. For some investors, being nimble means abandoning fundamental tenets of traditional investment practices such as asset allocation, periodic rebalancing, and buying and holding individual securities. Some pundits claim that today’s “dynamic” market demands a dynamic approach. They advocate individuals adopt alternative methods that include market timing, short-term trading, absolute return strategies, and expanded use of derivatives.

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