The buy-and-hold strategy is in question, whether we’re talking stocks or exchange traded funds (ETFs). Now, a growing number of financial advisors can be added to the list of those forsaking the strategy.
The buy-and-hold strategy is simply buying a mix of assets for the long-term, hanging on through the market’s ups and downs. But after a Lost Decade, many investors feel this does not work anymore.
Anne Tergeson and Jane J. Kim for The Wall Street Journal report that the macro-economic climate has shifted, so the investing strategy of many has, too. This has many advisors looking at alternative products and strategies to take the place of buy and hold.
Some advisors are parking money in low-risk investments, such as bonds, along with cash and gold. Some are turning to leveraged and short ETFs to maximize market exposure and raise capital based on daily market movements.