Why not just buy a fixed portfolio of TSP funds and hold it indefinitely?
This “buy-and-hold” strategy is simply a baseless one for those wanting to limit market risk while maximizing returns. The concept has been popularized by mutual fund managers who have a built-in financial conflict of interest. They discourage investors from leaving their funds by slapping on outrageous early redemption fees and back end loads. Yet they constantly market time within their own funds in an attempt to enhance performance! It’s easy to see what happened to even diversified stock funds during the 2000-2003 bear market. Those “buy-and-hold” investors lost–and lost big time. Any simple timing algorithm would have saved investors from having to suffer those losses. Timing is never perfect, but applied effectively and professionally it beats “buy-and-hold” cold sober. See our extensive report on this topic.
Related Questions
- Some Dimensional fixed income funds have high portfolio turnover rates. Is this inconsistent with a passive investment approach?
- CANT I BUY AND HOLD A DIVERSIFIED PORTFOLIO OF ACTIVELY MANAGED FUNDS AND GET BETTER RESULTS?
- CANT I BUY AND HOLD A DIVERSIFIED PORTFOLIO OF ACTIVELY-MANAGED FUNDS AND GET BETTER RESULTS?
