buy and hold long term

osho67 · Mar 2, 2009

Can this strategy work? Buy some popular ETFs like DIA, SPY, etc and hold till 2010-2011 . ?

Thanks

Khaled187 · Mar 2, 2009

crgarcia · Mar 2, 2009

Quote from osho67:

Can this strategy work? Buy some popular ETFs like DIA, SPY, etc and hold till 2010-2011 . ?

Thanks

This is about the only strategy that can give you profits (unlike daytrading).

How much you'll have to wait before the market recovers, and how long it may go meanwhile, remains to be seen.

But, waiting long enough, you'll profit.

Martinghoul · Mar 2, 2009

Quote from crgarcia:

This is about the only strategy that can give you profits (unlike daytrading).

How much you'll have to wait before the market recovers, and how long it may go meanwhile, remains to be seen.

But, waiting long enough, you'll profit.

In nominal terms, you might profit... Not so obvious whether the same will be true when you adjust for inflation.

Algorithm · Mar 2, 2009

Believe it or not, investing works.

Now everything depends on the details. How long you have to hold, price of investment at purchase, risk level.

Good Luck

crgarcia · Mar 2, 2009

Quote from Martinghoul:

In nominal terms, you might profit... Not so obvious whether the same will be true when you adjust for inflation.

Again, waiting long enough, you'll profit, overcoming inflation.

Altough it might take years, or even decades.

blnbr · Mar 2, 2009

Quote from osho67:

Can this strategy work? Buy some popular ETFs like DIA, SPY, etc and hold till 2010-2011 . ?

Thanks

It depends on how bad the market is going to get this time.

If the market is going to be as bad as 1929~1933 depression period. You would need to wait a lot longer than 2011. It took about 25 years from 1933 stock market low to get back to 1928 high by dollar term without considering inflation factor. But if the market is not far from the bottom now, then your strategy may work or work well. "Timing is everything", so it depends.

osho67 · Mar 3, 2009

Thanks for all the replies. Might just keep 10-20% of the funds in popular ETFs. Savings gives only 1-2% per year. ETFs could be a bit better than savings rate.

Am I correct in assuming ETFs give average dividend payments as well ?

Thanks

Index piker · Mar 3, 2009

In general indexing beats active trading the longer the time horizon.

It's really a pretty simple concept.

On average you can't beat the averages so expenses given the same level of risk determine profits.

http://www.bogleheads.org/forum/index.php

Index piker · Mar 3, 2009

Quote from blnbr:

It depends on how bad the market is going to get this time.

If the market is going to be as bad as 1929~1933 depression period. You would need to wait a lot longer than 2011. It took about 25 years from 1933 stock market low to get back to 1928 high by dollar term without considering inflation factor. But if the market is not far from the bottom now, then your strategy may work or work well. "Timing is everything", so it depends.

What a load of BS.
1) deflation made your money worth more
2) dividends

Off hand I think if you held it took around 7 yrs.