Ask an expert: Is buy and hold dead?

MSN Money's Anthony Mirhaydari discusses investment strategies for a choppy market.

By MSN Money Partner Oct 23, 2012 9:24AM
The market has certainly been choppy lately. Does a buy-and-hold strategy still make sense?

In this video, MSN Money's Anthony Mirhaydari discusses investment strategies for a choppy market. While long-term strategies may not fit the bill anymore, he discusses a few others that may help investors today.
The Dow Jones Industrial Average fell 205 points, or 1.5%, Friday. And although stocks eked out small gains Monday, Tuesday looks like it could echo  Friday's sell-off.

CorbisEarnings season has weighed on the market. But it's not just earnings. Mirhaydari explains that current risks are simply so numerous that only real long-term investors may ignore the shorter-term trends.

The buy-and-hold strategy, which worked so well a few decades ago when growth factors were aligning may no longer apply, considering the many headwinds we're facing now, Mirhaydari explains.

So if long-term strategies are not working anymore, which short-term strategies should investors use? Mirhaydari recommends watching currencies and market sectors.

The discussion about trading strategies for this environment continues over at MSN Money's Facebook community.
3Comments
Oct 23, 2012 1:13PM
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The Media loves to bring out stories like this on bad days.  Trading is gambling.  Period.
Oct 23, 2012 10:32AM
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NICE!  discussing buy and hold today while the market crashes!
Oct 23, 2012 4:51PM
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Do you recommend gold and bonds are a good investment caused of our economy uncertainties?

 

In addition, if Obama is re-elected will the U.S. stocks are worthless and china stocks are better investment.

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