Tag: buy and hold

Without ‘public confidence’ there are no markets

The public has been told all their lives to invest. Sock that money away – put it into the market. For the long term.

The No-Return Decade

Save dividends, which are now being whacked hard, long-term equity investors have little to show for their efforts over the last twelve years. Throw volatility into the mix, and you might think the last man at the table is footing the tab.

You should ponder this before telling the friend next to you “I’m not worried about my investments…the market always comes back.”

Because where it comes back to is all relative.

A trio of death knells

1) Buy and hold as an investment strategy – dead. The bigger question is whether people will still use Warren Buffett as an analogy for success of the concept (for better or worse), or whether people will trade their asses off from here on out and say “works for John Paulson.”

2) Google – dead. Not sure whether it’s just because Goldman Sachs said it and they’re still standing (unlike most of their peers), or whether the old adage “the bigger they are the harder they fall” is just sticking better than usual nowadays.

3) Wall Street bonuses – dead. I don’t think they should die (and I’ll have more on that later), but perception is reality and the perception of the taxpaying public is enough is enough.