Buying and holding can lead to significant emotional & investment pain for investors. Market downturns can be a prolonged and painful experience, further intensified when considering inflation.
Historically, there have been significant periods known as “lost decades” like 1929, 1968, or 1999 where $1,000 would have shrunk to less than $400 throughout the decade. And the path to recovery could take even longer, prolonging the painful experience. These periods of dramatic underperformance highlight the potential risks associated with a solely passive investment strategy.
This is exactly why we incorporate active risk management to avoid such pitfalls. Your trust in our strategy allows us to navigate these complexities, aiming for a smoother financial journey.
Buy & Hold’s Lost Decades
- We believe the preservation of capital is key to consistent, long-term investment success.
- Our investment approach is grounded in economic theory and backed by quantitative analysis.
- Managing drawdown risk is a pillar from which we build our portfolios.
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