Trusting Yourself With Buy and Hold Investing

Jason Zweig of the Wall Street Journal recently wrote an article ‘Will We Ever Again Trust Wall Street?’ that brilliantly steers one to consider employing a buy and hold investment strategy over an actively managed portfolio. “Buying and holding a diversified stock portfolio still makes sense. Paradoxically, as fewer people cling to their faith in traditional stock investing, the future rewards from it are likely to grow greater.”

With the way things have played out on Wall Street in the last two years, now might be a great time to reconsider your investing strategy and turn to a buy and hold strategy that provides for diversification and less risk than individual stocks. Look to index funds and exchange traded funds to build a low cost, globally diversified portfolio using asset allocation. Just think of all the time you will have in your day for other things. With all the time currently spent chasing the market, now you can quickly and easily buy and hold index funds and spend a fraction of the time rebalancing your portfolio. Better yet, if you choose to utilize one of the on-line portfolio management tools out there, like one offered by marketriders.com, monitoring and rebalancing your portfolio, to keep it in check, is a breeze.

Who better to trust with your own money than yourself!