Those who believe or disagree with buy and hold investment philosophy must first answer the question: What is a long term investment outlook?
Ask fifty investors the question and you get fifty answers.
The long term definition varies. The time often ends when the undisciplined investor impetuously decides to sell a security that was bought to be held for a longer term, until something more appealing comes along to replace it. The rationale comes after the transaction is completed.
The truth is, you need strong nerves and discipline to hold on to securities amidst constant advice to sell. Also, many advisers do not believe in buy and hold. For any number of reasons, most of which I find to be poor.
The Dow Industrial Average contains some of the largest, soundest companies, and cannot be considered speculative. Yet, the market all the time will be highly volatile. So, added pressures exist for frequent buying and selling.
A solution? Once you have set your strategy, avoid the media and the advice of unknowing friends and family.
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