This advice is often accompanied by long-term charts that show the impressive returns of stocks, bonds, and other asset classes over the past decades. Looks great, right? But unfortunately for most investors, it doesn't actually work out this way, for a variety of reasons.
One major problem is that even a well-diversified buy-and-hold portfolio can lose 50% during a bear market (and did exactly that in 2008-2009). And too many investors do not successfully weather such large market downturns. Some can't bear the pain of significant portfolio losses; others don't have a sufficiently long enough time frame to recover from them. Too often,...
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