Buy-and-Hold Investing: Does it Still Work?

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Transcript of Buy-and-Hold Investing: Does it Still Work?

Page 1: Buy-and-Hold Investing: Does it Still Work?
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This chart shows how the S&P 500

– the stock market –

has performed since 1950.

chart courtesy of Yahoo!Finance &

CSI Data

Page 4: Buy-and-Hold Investing: Does it Still Work?

For decades, stocks pretty much rose year-after-year.

‘Buy-and-Hold’ was a simple, profitable

investment strategy.

chart courtesy of Yahoo!Finance &

CSI Data

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Investing couldn’t have been easier

for busy working folks back then!

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But when the ‘Tech Bubble’ popped

in early 2000, everything changed.

chart courtesy of Yahoo!Finance &

CSI Data

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The S&P 500 dropped steadily

for the next 2 ½ years…

chart courtesy of Yahoo!Finance &

CSI Data

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…and took 7 years to get back to

where it was in 2000!

chart courtesy of Yahoo!Finance &

CSI Data

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What happened next scared investors so

badly many of them pulled out of the

markets – and remain out to this day!

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Just when stock prices had clawed their way

back to their 2000 levels, the ‘Credit Bubble’

popped in 2007.

chart courtesy of Yahoo!Finance &

CSI Data

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Stocks fell again, this time for almost

a year and a half…

chart courtesy of Yahoo!Finance &

CSI Data

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…and it took another 6 years for stocks to

get back to their 2000 levels!

chart courtesy of Yahoo!Finance &

CSI Data

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made things a for

401(k) investors to say the least!

These wild market swings

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Many stock market ‘experts’ call these years

‘The Lost Decade’ for investors…

chart courtesy of Yahoo!Finance &

CSI Data

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…but it took until 2013 for stock prices to

return – and hold above – their 2000 levels.

That makes it a ‘Lost Baker’s Dozen’!

chart courtesy of Yahoo!Finance &

CSI Data

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Many had to delay retirement – some retired

with much less than they had planned.

Folks who had always been told to

‘Buy-and-Hold’ suffered hits to their nest eggs that took years to recover.

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The stock market has been rising steadily since it

regained its 2000 price levels…

but there’s a new blip on the chart.

chart courtesy of Yahoo!Finance &

CSI Data

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Now, it could just be a blip…or it could be

the beginning of the next bear market…

chart courtesy of Yahoo!Finance &

CSI Data

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Yeah…if you live as long as

Methusela!

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Hey, it’s your money!

Don’t leave your 401(k) to fend for itself!

Get started today at: