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Well there is historically quite solid Alpha to be gained from the dead simple strategy of buy and hold. That's just another dead simple strategy after all, ye
by nightski 4y ago
Well there is historically quite solid Alpha to be gained from the dead simple strategy of buy and hold. That's just another dead simple strategy after all, yet plenty of people recommend it.
- plonk 4y agoBecause the long-term trend is always upwards. Trying to take advantage of volatility in the short term is completely different, it’s a zero-sum game.
- worik 4y ago> Because the long-term trend is always upwards That depends on your model. (Because it is your model that defines "long term") It is possible for markets to trend downward for decades at a time.
- Bostonian 4y agoThat's a good strategy, but it's not alpha, since alpha is defined as outperformance relative to a passive strategy.
- deleted 4y ago[deleted]
- lottin 4y agoBuying and holding the market gets you the market return, which by definition has zero alpha.
- nightski 4y agoWell the voo has consistently outperformed vtsax when bought and held so I feel my point stands. A strategy is a strategy. You have to choose one when you invest no matter how simple or complex.