While there has always been debate about the value of buy-and-hold investing, the last decade or so has really dealt a blow to this passive investment strategy. I have always said that the long-term statistics (some spanning 75 years or more) used by passive investing proponents to "prove" their point are totally unrealistic in relation to the actual time horizons of many investors. Over shorter periods of time, a buy-and-hold portfolio can suffer major losses, possibly right at the time investors need their money the most. Now is just such a time. After suffering through two major bear markets since 2000, individual investors and even many professionals are seeking out the kind of actively managed investment alternatives that I have recommended since 1995. This week, I'll revisit the perils of index investing, as well as provide a brief economic overview....
Filed under: Gary D. Halbert, Credit Crisis, Subprime, Baby Boomers, Economic Forecast, Investing Strategies, Risk Management, AdvisorLink, Halbert Wealth Management, Financial Crisis, Buy and Hold, Index investing, Niemann Equity Plus