Sunday, February 1, 2009

Buy and Hold Dead?




The stock market has gone nowhere to down for the last 10 years. The chart above shows US large capitalization (SPY), US small capitalization (IWM), US REITs (ICF), and foreign large capitalization (EFA) for the past 10 years. Your passive equity index allocation has not done anything worthwhile for a very long time. The current bear market has show the potential value of at least adding a tactical component to your asset allocation scheme.

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