Buy and hold is a strategy designed for the long term. The philosophy that underlies this strategy is that the market will eventually yield good returns, despite volatility that gives very low returns or very high returns at any particular moment.
The buy and hold philosophy is in direct opposition to the Market Timing philosophy that advocates quick movement in and out of the market, encouraging investors to buy low and sell high.
The buy and hold philosophy, as is suggested by the name, advocates choosing particular stocks or mutual funds based on solid research, and then simply holding onto them for many years
No comments:
Post a Comment