Most traditional money managers will take your money and put it into a buy and hold portfolio. When the next severe market downturn comes and you’re down -20%
, and in some cases -50%
, you may go from buying and holding to buying and folding.
They will tell you,
‘‘Don’t worry, the market always comes back.”
While that sounds comforting:
It took 4.5 years to come back from the 2007 peak.
It took 17 years to come back in 1965.
It took 26 years to come back in 1929 after the Great Depression.
Can you afford to waste all those years waiting for the market to recover?