The recent market and exchange traded fund (ETF) turmoil has investors and advisors alike rethinking the “buy-and-hold” strategy.
One firm in Pennsylvania has moved 65% of its assets into cash positions, making it the largest cash weighting for the firm in its history, reports Jeff Benjamin for Investment News. The firm isn’t alone. While some advisors say they would prefer to buy-and-hold forever, they realize it would be tougher to explain to clients why they haven’t made money for 10 or 20 years.
The fact is, too, that many advisors have never experienced this kind of market volatility.
Mutual fund investors are pulling out of U.S. and international stock funds, albeit at a slower rate than in previous weeks. The week ending Oct. 15, $13.9 billion was pulled out. The previous week, $43.3 billion was pulled out, reports Jonathan Burton for MarketWatch.