Buy and hold use to be the common phrase at most investment firms. I never really believed it to be the best plan; however, is the idea dead in all investment firms? There are two different thoughts for this topic.

The first thought I have is this method will be dead for the time being. The market took a huge dive, as we all know, and even the most sound stocks have gone down. People will not trust this theory and investors will try a new way to invest for a few years. Then, when they see the market in a bull move for a few years, they will go back to old ways. Getting 8%-10% seems too enticing for doing nearly nothing. The problem is we will always come back to a bear market again. Unless you learned from the first one, you will loose massive amounts of money again.

My second thought is people will no longer adhere to the buy and hold idea.  If their investment adviser does not decide to change, they will be history and the client will move on to someone who adheres to their own investing strategies. An example of a good investor is Gary Kaultbaum. I have mentioned him before on this site. He is a strict investor who only buys companies with growing sales and income. Growth stocks are not risky if strict on selling policies as mentioned in early articles, 8%. The upside is 200% to 1200% gains. That is life changing.

The person who learns form this bull market on money managing will in the future save themselves tons of money. Think if you could have, at worst, cut losses at 8% for all stocks, instead of 20%, 30%, 50% this year. Or even better, listened to people who know what they are talking about and sold stocks before the major downfall. If you are investing your money, it is adivsed you do not simply rely on somoene, but do some homework yourself and keep up to date with the market.