Is the stock market +EV?

I personally think the days of buy and hold are gone.

[mcb]

[ QUOTE ]
I personally think the days of buy and hold are gone.

[/ QUOTE ]
You, sir, are wrong.

[Sniper]

[ QUOTE ]
I personally think the days of buy and hold are gone.

[/ QUOTE ]

I think you know better! [img]/images/graemlins/wink.gif[/img]

There are simply far too many people that don't know any better than to just throw $$$ into their 401K without any thought at all.

yeah and thats the scary thing....there are so many reasons that i could post that would make buy and hold a suckers mantra.

[KaneKungFu123]

[ QUOTE ]
Of course not. The market grows average 7% year since 1900.

It's not zero sum.

[/ QUOTE ]

is it going to continue at this pace? seems kinda unrealistic? wont that number get smaller?

[r3vbr]

[ QUOTE ]
[ QUOTE ]
Of course not. The market grows average 7% year since 1900.

It's not zero sum.

[/ QUOTE ]



is it going to continue at this pace? seems kinda unrealistic? wont that number get smaller?

[/ QUOTE ]


there's no telling. but as technology advances are exponential, so is the wealth generated. the tendency may well be to grow even faster due to the exponential nature of information-flow with the internet + technology advances.

[DesertCat]

[ QUOTE ]
yeah and thats the scary thing....there are so many reasons that i could post that would make buy and hold a suckers mantra.

[/ QUOTE ]

There really is no real "buy and hold" investing approach. For example, Buffett isn't a "buy and hold" investor, he's a value investor. His holding period is often dictated by what the relative value he's offered by current prices. He's always made money from a combination of short (merger arbitrage, bond arbitration, options) and long term holdings.

Saying that holding stocks for long periods is always a losing strategy is naive. Perhaps you are too young to remember the internet bubble, when millions traded their way to riches, and then right back down to nothing.

[The Truth]

[ QUOTE ]
The book, A Random Walk Down Wall Street, will explain why the stock market is not zero sum. Investors in stocks are compensated by what's referred to as the "equity risk premium" which is the increased rate of return over bonds for taking more risk. What the ex ante percentage of this risk premium acutally amounts to is a subject of much debate in the investment world. For a thorough explanation of the equity risk premium and the theory behind it the book, The Equity Risk Premium by Dr. Bradford Cornell, is good. Basically what another poster stated is true, over time the valuation of the stock market as a whole increases. Somewhat of an oversimplification, the compounded rate of return over risk free bonds is the value of the equity risk premium.

[/ QUOTE ]

good book.

-blake

[Officer Farva]

The Stock Market is -EV for all intents and purposes. Why, the sell side rake: comissions.

if commissions are causing you to lose you either need to get a new broker, you suck, or are overtrading.