Passive Investment Strategies
The “Buy-and-Hold” investment strategy touted by an industry overrun with self-interest has proven once again to be disastrous for the individual investor. Holding stocks or mutual funds for the long term sounds nice in an advertisement but reality has proven to disappoint investors who hold through the inevitable downturns.
When does a passive approach work?
In raising your children?
In attempting to advance your career?
On the athletic Field?
Can you think of any goal-oriented activity where taking a passive approach improves your chances of success?
We’ve learned that in life, taking a passive approach to what’s important to you can be harmful. Investors who take a passive, buy-and-hold approach may be taking more risk than necessary to realize their financial goals. In contrast, active disciplines attempt to limit the exposure of your assets to volatile market conditions. While active investment strategies don’t guarantee your success, they do attempt to reduce risk while seeking opportunities for growth.
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