Is a buy-and-hold strategy still a viable approach to investing?
RS: Looking at the past decade of the Dow Jones Industrial Average, I believe it is clear that the traditional buy-and-hold school of thought is considerably less effective. In short, the game has changed. The Philosophy of asset allocations and buying companies with stable fundamentals and historic returns has been challenged. Today’s changing environment forces us to modernize our approach and strategies. The market now moves faster than it ever has. Anyone who sits and waits could simply miss the potential opportunities. To outperform the market, an advisor must think tactically. At the same time that we are actively managing risk within our clients’ portfolios, we are seeking investment opportunities across global capital markets. We respond to market conditions and quickly revise strategies, because one must employ tactical allocations as opposed to the static approaches of the major brokerage and investment houses. Q: What is tactical diversification and is it just a fancy term f
