What Are The Advantages Of Market Tracking Over a “Buy And Hold” Approach?
Most Investors buy and hold investments. That is, they buy stocks or mutual funds and hold them through rising and falling markets. They have no specific plan and are just hoping the funds will have risen when they need their money. Even with mutual funds, most mutual fund managers also stay fully invested in stocks through these rising and falling markets. The result is that during rising markets investors make money, and during falling markets they lose their gain. The key to more successful investing is to be invested in rising markets and out of them in falling markets. Tracking and heeding market trends can prevent major losses.
