Posts Tagged ‘buy and hold’

The behemoth investment companies like Fidelity Investments will often go to great lengths to protect their vulnerable, investment strategy reliant upon: Diversification. Does it work?

Recently, Fidelity Investments headlined the following pro-diversification article: “Don’t Give Up on Diversification”. The moral of the article was a warm reminder and exhortation that even though diversifying your investments didn’t work last year don’t give up or even consider other alternative investing strategies. Doing so means you simply don’t understand it as one of the only real, time honored investment principles. Which is light years behind current stock market system approaches.

Diversification traditionally combines various asset classes that are often unique to one another thereby separating and in turn protecting a portion of assets during market draw downs while others suffer losses. In other words, as professional money managers we have to admit that we really don’t know how different asset classes are going to profit or plunge this year or next so to hedge your bets, it’s best to play it safe and spread out your investments so you don’t lose everything.

Diversifying may help you keep your wealth longer, but it won’t make you wealthy. The promise of diversity proclaims slightly smaller losses during bad market times and significant loss of gains in good times.

Problem is in recent years that theory has failed.

In the end, diversifying using buy and hold strategies has not survived in recent markets and it’s an outdated way of managing your portfolio. Its a hope and pray recipe for mediocrity at best and an overall dissatisfying return from your portfolio long term.

So, how long can you afford to let economists and financial advisers tell you what really works today? Do these guys really profit themselves? I took both macro and micro economics 101 that essentially teaches once you lose all your money, why you lost it. There isn’t anyone, not me or whoever cares about your money like you care. The earlier you are able to get educated to trade on your own the better.

THEE way to wealth is not putting your eggs in multiple baskets. It’s putting your eggs in one basket, watching it very close…just making sure you have the right basket. ETF Trend Trading system uses technical analysis trading to make sure you know what basket is right. Once you learn to simply follow the system it only takes 5-10 minutes per night to average 6% each month.