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Investment Series: Buy and Hold is Not Dead

November 21, 2009 by derricke  
Filed under Investments

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The Blog Entry that Accompanies this Vlog is at: investorandtrader.blogspot.com My Daily Blog is at: investorandtrader.blogspot.com My channel at BlogTV is: www.blogtv.com My Podcast is at: airelon.podbean.com and embedded in the daily blog. The market is down! The market is down! Buy and Hold is dead! Buy and hold is dead! Warren Buffett is a hack! I’ve heard statements like this, and others since this bear market (which so many of us knew was coming). But does this mean that Buy and Hold …

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Comments

25 Comments on "Investment Series: Buy and Hold is Not Dead"

  1. AirelonTrading on Sat, 21st Nov 2009 7:44 pm 

    Which is why I’m hedging with the FAZ at the moment (as I mentioned on the daily blog) to hedge the DRIP stocks that are held. The hedge, could end up working out more profitable in some of the accounts.

    Aren’t ya a little heavy on the short side from a diversification money management standpoint?

  2. harshterrain on Sat, 21st Nov 2009 7:44 pm 

    Please becareful with buying and holding stocks. Capital preservation is key as well not just dividends. For example if you bought GE at $35 and now its at $12.10 you’ve lost way too much capital. It would have been better to stop out of GE at $30 and buy back at $6.

    I’m short this market via ETFs.
    SDS
    SRS
    SKF
    TWM

  3. AirelonTrading on Sat, 21st Nov 2009 7:44 pm 

    Nope. Once the government moves in with a Neo-Mercantilistic move? History has proven that the corporation is always on borrowed time.

    Happened to the whalers. Happened to the railroads from earlier in the 20th century when the government moved in. Didnt work out too well either for the airlines.

    The government moving in, and setting up shot = zero earnings profitability in the future.

  4. Excidium567 on Sat, 21st Nov 2009 7:44 pm 

    would you glance at at from a distance?

  5. AirelonTrading on Sat, 21st Nov 2009 7:44 pm 

    Wouldn’t touch it with a forty foot pole.

  6. dregret on Sat, 21st Nov 2009 7:44 pm 

    Hey Dan. What do you think about GM as a buy and hold?

  7. AirelonTrading on Sat, 21st Nov 2009 7:44 pm 

    Heheh.

    :^P

  8. ohio1998 on Sat, 21st Nov 2009 7:44 pm 

    I’m with you, just making you explain yourself. :)

  9. AirelonTrading on Sat, 21st Nov 2009 7:44 pm 

    Another dislocation in bonds and equities is setting up. And the credit markets, always, always, always win.

  10. AirelonTrading on Sat, 21st Nov 2009 7:44 pm 

    Ugh, it looks like one of my comments, my first comment, didn’t go through.

    It was along the lines of: The economic situation as it stands now, is almost way, way worse than it was last October. The governemtn is getting to a point of being broke. The rates are such now that housing can’t recover as rates go higher, and the govt can’t spend any more, due to the rates.

  11. AirelonTrading on Sat, 21st Nov 2009 7:44 pm 

    the playlist at view_play_list?p=BF53B86BD4501DA7

  12. AirelonTrading on Sat, 21st Nov 2009 7:44 pm 

    As far as options? I noticed on the blog that I mentioned in this video? It had a recommended book on options. I can’t personally recommend it, as I haven’t read it yet, but that was the last book I had at least seen on options.

    Myself? I just sort of ‘picked it up’ through trial and error (not a method I’d recommend, lol) over the years. I also have a playlist on Futures Commodity options, but the principles of black scholes apply to all options. It can be found at:

  13. AirelonTrading on Sat, 21st Nov 2009 7:44 pm 

    Heyya Bob. No worries, as Derek (ohio1998) will tell you, I OFTEN go over the 500 chars :)
    I use Sharebuilder for my Investment portfolios, as well as optionsXpress. I use another optionsXpress account to trade with. So I have no problem having them at the same broker, but for my own psychology? I have them in seperate accounts.

  14. AirelonTrading on Sat, 21st Nov 2009 7:44 pm 

    … October, only in a much, much worse economic scenario.

    I truly am beginning to believe that we are going the way of 1933, and the truly sad thing is? It didn’t have to happen. All of the wrong moves, were made at exactly the wrong time.

  15. AirelonTrading on Sat, 21st Nov 2009 7:44 pm 

    … spend money. At the same time, it’d further decimate the housing market buyers (which is supposed to be leading the rebound), and at the same time, any new mortgages resetting are going to be resetting in an environment of raising rates. Not good.

    At the same time, unemployment is in the teens in many areas, and jobless pool is even higher. So there is no income, and rates continue to increase.

    A treasury auction fail at this point? And we have a repeat, in a worse situation,

  16. Bigbobdallas1952 on Sat, 21st Nov 2009 7:44 pm 

    I tried to reverse the two comment since I was over on them so read the second Bob below and then it will make since. Sorry for the long comment

  17. Bigbobdallas1952 on Sat, 21st Nov 2009 7:44 pm 

    I am working on getting my 25,000 built up by the time I retire from my current job in 5 years so I can day trade in retirement. Which broker or brokers do you use if I may ask? Also I am still learning about a lot of stuff on this trading. I am now getting my self ready to start studying and using options and write options and such. By the way is there a specific book that you might rec. for how to do options and such. I know that the net has tons of places to look, just curious.

  18. Bigbobdallas1952 on Sat, 21st Nov 2009 7:44 pm 

    I noticed you said you keep your Investments in another account. Do you use the same broker or what I was wanting to do that but wasn’t sure if I need to get another broker or what. I use by the way for my swing trading Trade King, although I have only been into it for a short time. I just now got out of cash account and now in margin. By way I am 57 so I waited a long time to do this. But i think i pick a good time to get in an learn. I realized I was over on characters so it is below

  19. ohio1998 on Sat, 21st Nov 2009 7:44 pm 

    How do we know that last October wasn’t that event?

  20. ohio1998 on Sat, 21st Nov 2009 7:44 pm 

    Buy gold, we are all gonna die!!!!!

  21. AirelonTrading on Sat, 21st Nov 2009 7:44 pm 

    But those opportunities are brief, and you have to know when to step in. Buy when everything is on fire.

  22. 69elpresidente on Sat, 21st Nov 2009 7:44 pm 

    you should put that on a chain lol

  23. harshterrain on Sat, 21st Nov 2009 7:44 pm 

    I don’t invest, hedge, or diversify. I only trade (day or swing). I’m out already out of the above inverse etfs with a nice profit on each. Thanks for the videos, you keep me thinking.

  24. AirelonTrading on Sat, 21st Nov 2009 7:44 pm 

    Crashof2008 is his YouTube channel name.

    Highly recommend them for looking at the problem of over-leverage.

  25. Dicofole on Sat, 21st Nov 2009 7:44 pm 

    Who is Matt you are talking about at 5:20 in your video? where can I find his videos?

    Great vids like always.
    Thanks!

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