The Buy-and-Hold Strategy Has Failed You Catastrophically
The Buy-and-Hold Strategy Has Failed You Catastrophically by
The market is measured by the performance of the S&P 500. A rule of thumb is to expect an average return of 10% a year, but in the 21st century, that hasn’t worked out yet.
Over the past 17 years, the average annual return is just 4% — less than half our rule of thumb.
That means every $10,000 you invested 17 years ago would be worth just $16,800 today.
If we were averaging 10% a year, that $10,000 would have turned into $27,000 over the same time frame.
And this period includes the dot-com bubble in the early 2000s … the global financial crisis in 2008 … the Federal Reserve’s easy-money policies … global uncertainty … etc.
In short, it covers the gamut of market situations.
The truth is, the standard buy-and-hold strategy has failed you — catastrophically.
What’s worse is this fate could have been avoided. Let me explain…
Confessions of a Wall Street Insider
Hindsight is always 20/20, but the reality is that the buy-and-hold strategy is not working out in the 21st century thus far.
Instead of settling for the indexed returns, there’s a better strategy that could have avoided this fate. And when the average annual return of the index exceeds 10%, this method still outperforms.
I’m talking about a little-known but incredibly powerful document that one group has used as early as the mid-1960s to consistently outperform the market.
The document is an everyday item, a calendar, but it’s notated with important trends that helped guide Merrill Lynch to triple the market’s returns over a 10-year period … and it traded just seven sectors of the market.
Now, I wouldn’t tell you all this just to tease a concept that I haven’t perfected. The truth is, you’re in luck.
Because not long ago, I got my hands on the original calendar that Merrill Lynch based its research on.
And with it, I’ve created what I consider the easiest, most hands-off way for the conservative investor to achieve truly fantastic wealth. Take a look: