Why Buy and Hold?

Since I can remember, and that's a long time ago, the Wall Street brokerage companies, mavens and mutual fund managers have been exhorting the mantra of Buy and Hold for all your investments. There have been erudite studies published that this is the only way to go.

Does it really work or has the little investor been lied to all these years. Of course, you know the answer if you have owned any stocks or funds for the past 3 years. From my analysis the latter is true. The big boys buy and sell all the time. If you look at the executives of companies it seems they all know when to sell ? right at the top before their own company stocks decline. This is easily proven, as the SEC requires all listed-company executives must report both buy and sell transactions. It is not the same as an "insider" sale, but it might as well be, as those guys know if the company is making or losing money. The past couple of years the preponderance of stock sales has been on the sell side.

These sales are easily understandable, but why do brokerage companies want you to buy and hold, especially hold? There are 2 reasons. First, they want to move inventory out of their ownership to you. That transfers the risk and now they have your money.

Even more important, when you HOLD there is less stock for sale, less "float" (fewer tradable issues), and that means it takes less money to manipulate that particular issue.

Also fund managers don't want you to sell their fund once you have bought it because they get paid on the amount of money in the fund not on the performance of the fund. This is a great rip off of the investor causing him to hold an asset that is worth less and less. Many of the large fund managers are paid 7 figure salaries. How can a so-called professional manager receive more than a million dollars to lose money for his clients? Yet, they do!

Buy and hold is a farce perpetrated on the small investor. There are 78 million mutual fund owners and 80% of them have less than $50,000 in their accounts. No one ever says SELL.

Here is one more fact you will not read in the financial media. Mutual funds only work during bull markets. The bull market that started in 1974 (some say 1982) definitely ended in 2000. The longer a bull market is in effect the longer is the bear market that follows and is usually about the same length of time. Scary, huh?! But true.

Now what? Buy and hold? The facts speak for themselves. If you are not a trader the safest place for your money during the next several years is in U.S. government bonds. They won't pay much, but you won't lose your money as this bear eats away at the stock market.

Al Thomas' book, "If It Doesn't Go Up, Don't Buy It!" has helped thousands of people make money and keep their profits with his simple 2-step method. Read the first chapter at http://www.mutualfundmagic.com and discover why he's the man that Wall Street does not want you to know.

1-888-345-7870; [email protected]

In The News:

When should you sell your mutual fund schemes? - Stocks and equity mutual funds are different  Economic TimesInvesting in an individual stock and equity mutual fund scheme is different. You must look at various parameters like key ratios while investing in a stock. Hence ...
Why HDFC Bank stock is among the top picks of mutual funds  Business TodayPrivate sector lender HDFC Bank, the third-largest Indian firm by market capitalisation, is among the favourite stocks in the portfolios of mutual funds. Despite ...
Sebi makes life easy for MFs, FPIs  Economic TimesMumbai: The Securities and Exchange Board of India has allowed mutual funds to create segregated portfolios for stressed debt securities and eased listing ...
Should you shift from large-cap mutual funds to index funds?  Economic TimesThe index fund category of mutual fund schemes is slowly gaining traction among investors. The fortunes of index funds are changing as not only are they being ...
How your mutual funds played the balancing act during stocks crash  Economic TimesAs with market cap allocations, equity funds seem to be maintaining their sectoral exposures.
Sebi in talks with industry on mutual funds norms  Economic TimesMUMBAI: India's market regulator is in talks with industry to deal with fears of contagion effect on mutual funds due to a liquidity crisis faced by the country's ...
How diversified should a mutual fund be?  LivemintThe extent of diversification is driven by the mutual fund's strategy and the market segment it invests in.
Mutual Funds For First Time Manage More Money In Stocks Than Insurers  BloombergQuintMutual funds for the first time manage more money in equities than insurers as the last stock rout erased the gap that started narrowing after demonetisation.
See how they play market crash! MFs sold other stocks to lap up these 21 in October mayhem  Economic TimesPopular beaten-down stocks attracted big money from institutional investors on Dalal Street in October, when the domestic equity market was facing severe ...
Kotak Mutual Fund is betting on these 5 sectors in 2019  Moneycontrol.comWhile current valuations are not cheap, the fund house expects a further pick-up in earnings.
Hot and Cold Stocks of Mutual Funds in October 2018  MoneylifeIn October 2018, Axis Bank and ICICI Bank were the most preferred stocks of Indian mutual funds. The net purchases of Axis Bank were Rs1,504 crore, of which ...
Union MF's Vinay Paharia: We're overweight on IT, energy stocks; underweight on financials  Moneycontrol.comThe rupee's depreciation against the US dollar has improved the business outlook for the information technology sector making it a favoured bet for most fund ...
Are smart beta mutual funds better than large-cap MFs?  Economic TimesSmart beta funds seeks to enhance returns from the base index by buying a larger proportion of stocks compared to their share in the underlying index.
FIIs, MFs bet on 138 stocks in last 1 year; should you buy?  Moneycontrol.comOut of the 138 stocks which witnessed increase in weightage on a year-on-year basis, as many as 14 stocks saw a correction of 20-80 percent in the last 1 year.
Trade Setup for Thursday: Top 15 things to know before Opening Bell  Moneycontrol.com"Closing above 11,050 will add further strength to the ongoing (up) trend and open gates for much higher levels," said Sahaj Agrawal, DVP – Derivatives, Kotak ...
Mutual funds garner Rs 7,985 crore via SIPs in November  Economic TimesNEW DELHI: Retail investors continued to pour money in mutual fundS through systematic investment plans (SIPs) as the industry received Rs 7,985 crore via ...
The Forbes Fund Grading System  ForbesWhich stock funds are bull market winners? Which are bear-market survivors? Maybe a fund that has caught your eye sports an especially good long-term ...
Investors flee bonds, stocks in turbulent week for growth, trade  Moneycontrol.comBut investors were continuing to edge back into emerging market stocks, which saw their eighth week of inflows with $2.7 billion.
Is your mutual fund portfolio really diversified?  Moneycontrol.comIf your portfolio consists of equity funds which have similar stock holdings, then it amounts to just duplication and may negate the positive effects of ...
YES Bank promoters prepay Rs 400 crore loans to Mutual Fund firms: Sources  Economic TimesYes Bank promoter companies today prepaid Rs 400 crore of non-convertible debentures (NCDs) held by two mutual funds. According to ET Now, the promoters ...
Fund managers' bets: Top 10 large, mid and small-cap stocks that MFs bought in October  Moneycontrol.comMF industry assets grew to Rs 22.2 lakh crore on the back of improved inflows into equity-oriented and liquid funds.
AQR Strips ‘Risk Parity’ Name From Mutual Fund After Redemptions  BloombergQuint(Bloomberg) -- AQR Capital Management's flagship risk parity mutual fund, which has suffered big outflows, will no longer be billed as a risk parity fund.
Leveling The Playing Field For Investors: Interactive Brokers Integrates New Constructs Research  ForbesLess than a month after my firm's TD Ameritrade integration, clients of Interactive Brokers have access to New Constructs reports and ratings on over 10,000 ...
Sharp swings in Sensex: Here are 5 things you should avoid  Economic TimesThe Sensex dropped more than 500 points in the Tuesday morning trade but as the day progressed it climbed back up and again dropped. Some of the factors ...
Why liquidity offered by mutual funds is good for you  Moneycontrol.comYou may come across emergencies which warrant sudden requirement of cash. In such a situation, mutual funds come in handy.
Is TIAA-CREF Large Cap Value Premier (TRCPX) a Strong Mutual Fund Pick Right Now?  NasdaqIf investors are looking at the Large Cap Value fund category, TIAA-CREF Large Cap Value Premier (TRCPX) could be a potential option. TRCPX carries a.
3 Top-Ranked Real Estate Mutual Funds for Great Returns  NasdaqInvesting in the real estate sector adds stability to a portfolio, mainly because volatility in property prices is far less than what is experienced.
Looking to invest in small cap mutual funds? Here’s why it may be a good idea  The Financial ExpressDue to steep decline in stock prices of small cap stocks, their valuations are now looking a lot better than before.
Picking the best mutual fund: Are past returns relevant after re-categorisation?  Moneycontrol.comWhile selecting a scheme for investment or while deciding whether to continue with a current investment, a fund's performance track record does play a critical ...
Stock Market Forecast: Dividend Stocks To Fight Volatility  Investor's Business DailyThe broad stock market gained 2.04% last month. Still, the stock market forecast by fund managers is for more volatility going forward.
Explained: What is an equity diversified fund and what makes it different?  LivemintAn equity diversified mutual fund is any equity fund which invests across different industries and sectors.
401(k): How does the stock market drop affect my retirement savings?  USA TODAY401(k) retirement plans are taking a hit from the stock market drop. Declines are steeper for all-stock portfolios.
Invest in stocks in run-up to 2019 general elections to profit from volatility: FundsIndia  LivemintInvesting five to six months before the elections in 2009 and 2014 earned an average 3% to 6% more than the Indian benchmark return in the five-year period to ...
U.S.-Stock Funds Seek Another ‘Up’ Year, but It Will Be Close  Wall Street JournalMonthly Monitor: An average total return of 1.7% for U.S.-stock mutual funds and exchange-traded funds in November puts the year-to-date rise at a paltry 1.6%.
Buying frenzy: 10 stocks where foreign investors poured in maximum funds in Q2  Moneycontrol.comFPI increased stake by more than 1 percent in 30 companies out of BSE 200 including 10 stocks wherein they upped shareholding by 2.5-10.4 percent in ...
Week-Long Carnage in Bank Stocks Is Now Worst Slide of Trump Era  BloombergIt's tough all around the market, but in few places is the pain more pronounced than bank stocks. Signs of muted loan growth and concern the economy will ...
Fed Up With Your Bank? These 7 Options Will Make You Much More Money  ForbesIs your bank still paying you pennies on the dollar on your savings accounts? Here are 7 bank alternatives which will pay you much more.
ETMarkets Weekend Podcast: Which mutual fund to pick now: Largecap, midcap, multicap or smallcap?  Economic TimesHi there! Good morning, this is Tanisha Sharma from ETMarkets.com, and I welcome you to a very special edition of our regular Weekend podcast. Domestic ...
Rising volatility is slowing outflows from stock pickers’ funds: Goldman Sachs  MarketWatchMutual fund outflows are on pace for their lowest rate since 2014.
The Mutual Fund Show: This Asset Manager Topped Crisil’s Ranking And How…  BloombergQuintBased on the performance of asset managers, Crisil ranked 462 funds as of September. Of this, 200 are equity funds, 214 are debt and 48 are hybrid.
A New Wrinkle In The U.S.-China Trade Dispute  ForbesLast week global stocks plunged on concerns that trade negotiations between the U.S. and China are not running as smoothly as initially thought. The S&P 500 ...
Horses for courses: 2 mutual fund portfolios depending on your favourite for Lok Sabha polls  Moneycontrol.comYou could simply go ahead and invest in good quality funds or if you have a strong view on the outcome of the elections, then you can invest in an 'Election ...
How to donate shares to your favorite charity  MarketWatchGiving shares helps the recipient, and lightens your tax bill.
Stock News: Investors Taking a Second Look at Veritone, Inc. (:VERI) After Recent Market Moves  The Coin GuildMajor market players are buzzing over Veritone, Inc. (:VERI) as their share price hit $5.63 at the end of the most recent trading session. Market capitalization is ...
Investment Options That Can Help Millennials Shed Risk Aversion  Zacks.comWhile millennials are doing a good job of saving in traditional ways, not parking their money in high-return investment options could be a potential mistake.
The 5 Best Investments You Can Make in 2019  Kiplinger's Personal FinanceGood riddance, 2018! These are the five best investments you can make in 2019 to recover from last year's nauseating roller-coaster market.
5 strategies to adopt while choosing which mutual fund categories to invest  Moneycontrol.comThe decision regarding mutual fund category to invest in would primarily depend upon the investor's risk tolerance and investment horizon.
Stock News: Investors Keen on InflaRx NV (:IFRX) as it Makes Headlines With Moves  The Coin GuildMajor market players are buzzing over InflaRx N.V. (:IFRX) as their share price hit $29.82 at the end of the most recent trading session. Market capitalization is ...
Investors move HC on Elcid stock-price issue  Economic TimesSeveral buyers are willing to buy shares in Elcid but no seller is willing to sell due to the vast disparity in real and market price.
Stocks in the News: Investors Keen on Starbucks Corporation (NASDAQ:SBUX) as it Makes Waves With Moves  The Coin GuildMajor market players are buzzing over Starbucks Corporation (NASDAQ:SBUX) as their share price hit $65.47 at the end of the most recent trading session.
Stock News: Investors Keen on Denny's Corporation (NASDAQ:DENN) as it Makes Waves With Moves  The Coin GuildMajor market players are buzzing over Denny's Corporation (NASDAQ:DENN) as their share price hit $16.18 at the end of the most recent trading session.
IDFC Tax Advantage (ELSS) Fund - Regular Plan NAV: IDFC Tax Advantage (ELSS) Fund - Regular Plan-Growth Equity Factsheet  Economic TimesObjective: The scheme seeks to build a diversified portfolio comprising of stocks of companies with strong fundamentals that are available at reasonable ...
Stocks in the News: Investors Taking a Second Look at Altra Industrial Motion Corp. (NASDAQ:AIMC) After Recent Market Moves  The Coin GuildMajor market players are buzzing over Altra Industrial Motion Corp. (NASDAQ:AIMC) as their share price hit $27.33 at the end of the most recent trading session.
3 Top-Ranked Short-Term Government Bond Mutual Funds  NasdaqA short-term government bond fund is a mutual fund that's limited by its investment objectives and fund bylaws to investing primarily in short-term.
Trend Focus: Investors Keen on Shares of Stock Yards Bancorp, Inc. (NASDAQ:SYBT) as it Makes Headlines With Moves  The Coin GuildMajor market players are buzzing over Stock Yards Bancorp, Inc. (NASDAQ:SYBT) as their share price hit $28.87 at the end of the most recent trading session.
Stock Update: Investors Keen on Consol Energy Inc. (:CEIX) as it Makes Headlines With Moves  The Coin GuildMajor market players are buzzing over Consol Energy Inc. (:CEIX) as their share price hit $32.15 at the end of the most recent trading session.
Market Focus: Investors Taking a Second Look at Spring Bank Pharmaceuticals, Inc. (:SBPH) After Recent Market Moves  The Coin GuildMajor market players are buzzing over Spring Bank Pharmaceuticals, Inc. (:SBPH) as their share price hit $10.8 at the end of the most recent trading session.
Stock Review: Investors Focusing on Shares of AnaptysBio, Inc. (:ANAB) as Company Makes Headlines With Moves  The Coin GuildMajor market players are buzzing over AnaptysBio, Inc. (:ANAB) as their share price hit $71.98 at the end of the most recent trading session.
3 Ways to Reduce Risk in a Portfolio  Morningstar.comHere are some defensive investments to consider in this volatile market.
Why stopping mutual fund SIPs when stock market falls can jeopardise your financial goals  Economic TimesFear has returned to Dalal Street. Caught in a perfect storm of weak macroeconomic numbers, the IL&FS crisis and fear of more defaults, equity markets have ...
Fund managers ready to go shopping after sharp correction in stocks  Moneycontrol.comMutual funds that were holding around 8-10 percent cash level in their equity portfolio are likely to purchase shares of companies in banking and financial ...
7 stocks most favoured by mutual funds over last one year  Economic TimesAs the markets hit a speed bump, stocks favoured by mutual funds appear to be safer bets.
Five stocks that mutual funds think can outperform  Economic TimesA volatile month gave fund managers a chance to cherry-pick stocks.
Is your mutual fund buying or selling stocks too much?  LivemintA mutual fund scheme's turnover ratio tells you how frequently its fund manager buys and sells the underlying stocks. Typically, higher the turnover ratio, more ...
Mutual funds' exposure to banks hits 3-month low of Rs 1.88 lakh crore in Sept  Economic TimesMutual funds' holding of banking stocks declined by over Rs 21,600 crore to Rs 1.88 lakh crore in September, driven by the correction in equity markets.
Small- and mid-cap mutual funds open doors again, but should you invest?  LivemintL&T Emerging Businesses Fund and DSP Small Cap Fund have allowed *fresh* mutual fund investments, taking advantage of a continued correction in small- ...
Shall I buy the HDFC AMC stock or mutual fund?  LivemintThe risk of putting all our money in a few stocks is much higher than investing in mutual funds.
Investing in equity mutual funds versus investing in shares: Which is better?  Economic TimesThe final goal for all stock investors is the same: to get superior returns. However, in terms of what you do, there are two completely different routes.
Value focussed MF are cutting their exposure to Indian stocks. What about you?  Moneycontrol.comAs valuations climb, the funds have chosen to stay light on Indian stocks and exposure to bonds and arbitrage has gone up.
Is it a good time to invest in small-cap mutual fund schemes?  Economic TimesDespite the slide in the Nifty Smallcap100 index, fund houses seem to be placing faith in small-cap funds again. Should investors take the cue?
Mutual funds that destroyed most investor wealth in the September selloff  Economic TimesThe recent selloff in the stock market has raised fears of a rush for redemption in mutual funds.​
Why your mutual fund earned you less than Nifty in recent market rally  Economic TimesThe more the number of stocks in an index, the weaker is its performance.
Mutual fund holdings in IT stocks touch all-time high  Economic TimesMumbai: Fund managers are betting big on the IT sector, on the back of an improving global macro environment, depreciating rupee and rise in IT spends.
Mutual fund managers bought & sold these 20 stocks in May  Moneycontrol.comRelative valuations are attractive and around average, but midcap valuations are still looking stretched despite the recent drawdown, Morgan Stanley said in a ...
Investing in stocks needs deep understanding of markets  LivemintDirect investing into individual stocks requires deep understanding of the markets and continuous involvement into investing.
Are mid and small-cap mutual funds holding too many illiquid stocks?  Economic TimesLiquidity has been scarce in Indian capital markets in recent weeks. Mutual funds have also not been spared the pain, with liquid and money market funds ...
How stocks picked by mutual funds over 2014 to 2017 have performed  Economic TimesWhile the most wanted stocks of 2014 and 2015 have done well, the recent picks have disappointed.
Investing in mutual funds? Diversify to reduce risks and enhance returns  Moneycontrol.comIn the worst of the times for stock markets, individuals invested across the asset classes are less hit as compared to investors betting all their money on stocks.
Four Strategies For Managing A Portfolio Of Mutual Funds  InvestopediaNow that you've built your portfolio of mutual funds, you need to know how to maintain it. Let's talk about how to manage a mutual-fund portfolio by reviewing four ...
Bleeding mutual funds: Should you go back to good old fixed deposits?  Moneycontrol.comAre you worried about the losses on your investments in mutual fund schemes? You are not alone. There are many investors who dumped their good old fixed ...
Top stocks bought and sold by mutual funds in June 2018  IndiainfolineInvestors should focus on longevity to create wealth. We advise investors to stay invested in those stocks whose growth story is still intact.
HDFC AMC, Reliance Nippon stocks fall over 9% after Sebi caps expense ratio of mutual funds  Business TodayThe stocks of asset management companies (AMCs) fell in trade today on fears of lower revenues after market regulator Sebi capped expense ratio for mutual ...
Some international funds are giving around 40% returns. Should you invest?  Economic TimesInternational mutual funds are topping the return charts. The category has returned around 20 per cent in one year. Should retail investors bet on these schemes ...
Domestic mutual funds are selling these smallcaps and midcaps in hordes. Check out why  Economic TimesNEW DELHI: And you thought midcaps and smallcaps have been under pressure over the past three months because of the Sebi reclassification, requiring ...
Should I cut down my stock allocation and invest more in mutual funds?  Economic TimesMy risk appetite is moderately high and my investment horizon is 10 years. Please review my portfolio. I am investing in the following mutual fund schemes:
Here are top buys and sells by mutual funds in August when Sensex, Nifty hit record highs  Moneycontrol.comAmong largecaps, HDFC AMC, Sun TV Network, TVS Motor, Vedanta and Tech Mahindra topped the August buying list of top 10 mutual fund houses which ...
Choose your mobile app wisely to invest in direct mutual funds  Moneycontrol.comSome mobile apps are not updated on regular basis. Often there may be errors in the stocks portfolio of several schemes.
IL&FS downgrade to hit 35 MF schemes as well  Economic TimesMUMBAI: ICRA has downgraded the debt of IL&FS to a level below that considered investment-grade for mutual funds, putting the spotlight on asset managers ...
These 10 stocks make up over one-third of entire mutual fund portfolio in India; check full list  The Financial ExpressEven as Sensex and Nifty continue their strong rally driven by a cheer in blue chip stocks, just 10 top names make up a whopping 34% of the entire mutual fund ...
Top 10 large, mid and smallcap stocks which fund managers bought & sold in September  Moneycontrol.comFears of a liquidity crunch following the IL&FS crisis hit the mutual fund industry in September. Cash plans, or liquid funds, were the worst hit.
Benefits of asset allocation in mutual funds  Economic TimesWith macros looking weak and stock market indices at a new high, financial planners believe it is important for investors to follow the principle of asset allocation.
Mutual funds' AUM plunges by Rs 2.11 lakh crore in a month  Economic TimesThe drop in the asset base is mainly due to an outflow of Rs 2.3 lakh crore from MF schemes.
6 mistakes that small investors make when stock market is doing well, interest rates are rising  Economic TimesThe biggest mistakes happen when markets are doing well. In many cases, the SIP returns are in the red.
Mutual funds sell financial stocks the most as markets soared in January  MintMutual funds locked in gains in financial stocks the most among the top stocks in January, taking advantage of the run-up in the pack and record high levels in ...
What Is a Mutual Fund? Pros, Cons, Types and How to Invest  TheStreet.comKeep hearing about mutual funds but don't really know what they are? No sweat! TheStreet breaks down what a mutual fund is, the different kinds, and how to ...
List of best mutual fund portfolios as per your risk appetite  Moneycontrol.comYou can build a portfolio of mutual fund schemes based on your risk profile.
Want to invest in ‘value’ stocks like Buffett? Look at these funds  Economic TimesValue investing is a strategy to spot stocks trading below their intrinsic values.
Five basic formats of equity mutual funds you must know before investing  Moneycontrol.comIs it the right time for you to invest in mutual funds? Choosing the right mutual fund in one's portfolio is not an easy task. Here are the five basic formats of equity ...
Are you worried about fall in stock markets? 5 do's while reviewing your stock portfolio  Moneycontrol.comKeep aside the seasoned investors, most investors do lose track of their portfolios, especially when the market is in a bull run.
Do not make these 7 mistakes while investing in mutual funds  Moneycontrol.comNever forget that you are investing because you have to achieve your financial goals. Investing without a goal is akin to travelling without a destination.

How (NOT) to Buy Mutual Funds

When it comes to mutual funds, there is a lot... Read More

Understanding the Bulls and the Bears

If you've ever flipped on the television to CNN Financial... Read More

Stock Market Course .... Day Trader Online Seminar ... Can You Generate Profits Trading from Home?

When it comes to stock market trading it PAYS to... Read More

Trading Systems

To become a successful trader you must have some kind... Read More

Pension Plans

If you have a pension plan at work you will... Read More

The Bottom?

Every day I hear someone on CNBC proclaim that "this... Read More

Economists #2

Economists know more about how the fragments of society work... Read More

Stocks & Oil, Sat Jun 18th, 2005

Both the stock market and oil prices rallied recently, which... Read More

Mindset

In 1960 an engineer working for a watch company in... Read More

What is Involved in Peak Performance Trading?

There is so much involved in developing peak performance, that... Read More

One Way Street

Ever turn down a street, get half way and suddenly... Read More

Staying Sane While Wall Street Crashes

Everybody is riding the Wall Street Roller coaster. Even if... Read More

Successful Trading ? Taking Profits - Part 1

So you're started trading, you bought some positions with your... Read More

Social Insecurity

Just about everything you have been told about Social Security... Read More

Its Snowing

The Winter Games for the Olympics are coming up soon... Read More

Will the Stock Market be Lower in October?

The stock market often closes a week in the middle... Read More

Stock Market Investing: Knowing When (and when not) to Sell

One of the greatest challenges of investing in stocks is... Read More

Money, Insanity and Wall Street

Money: the most charged word in the planet. It means... Read More

Direction

It is difficult to make money in a bull market,... Read More

Diversification

Wall Street's watchword has always been diversification, but what does... Read More

Investing in the Stock Market - When To!

Is really not as important as to how you invest... Read More

Series 7 Exam

What is the Series 7 Exam? If you... Read More

Gurgle Gurgle

Caught in a whirlpool and being sucked under. No life... Read More

Is Active Trading The Answer?

One of the main reasons many of us get into... Read More

Perfect Storm

Having lived aboard a sailboat for 2 years I was... Read More