Is Buy and Hold Dead? Or How to Enjoy Sailing while Sipping Wine!

Gosh I remember the days of spring in Florida when the family would go sailing out in the Gulf of Mexico. When the wind was right, the ride was exhilarating. When the wind disappeared and the hot sun started beating down, well, I just wanted to be somewhere else, especially when it started raining.

Does this remind you of your investment management! Gee its wonderful when the market takes off and your sails are full, it’s exhilarating(I love that word), however the wind suddenly stops, the sky is black and it starts to pour rain, oh yeah, the market takes a dive. You feel unprotected and vulnerable!!! You would like to zip to safety by jumping downstairs into the hull of your boat, however who’s guiding the boat to safety???

Tomorrow I will discuss reasons why sailing should not be your only asset allocation mandate. Ask yourself, why not have a process that allows me to sail when the conditions are right, but also allows me to row and seek to protect myself when the conditions get nasty…

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.

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