While most of us who advocate Investing Every Month
tend to be big proponents of the buy and hold philosophy, I'm hearing a lot of pundits claiming that that approach is dead. This leads me to a simple question: What is the Alternative to Buy and Hold?
I think it's very irrational for the unsophisticated investor to start trying to dally in alternative investing strategies. I'd often argue that the financial sector
is having a lot of trouble interpreting this market. So when pundits are suggesting to me that I abandon buy and hold, I'm still waiting for them to tell me what the alternative is.
When average investors were sold on buy and hold, it was predicated on a simple belief that the stock market on average outpaced inflation. Most of us have approached this situation buy buying mutual funds
to get diversity and dollar cost averaging to get a reasonable entry price. If we're going to throw out the notion that the stock market beats inflation, then why am I touching stocks at all?