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View Diary: The Stock Market is Rigged (34 comments)

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    •  Results of traders may vary (1+ / 0-)
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      nextstep

      as a whole, the returns won't be good. Nevertheless, contrary to your original assertions, the stock market has had significant positive returns despite two crashes.

      You have the right to your own opinions, but not your own facts.

      by trumanesque on Tue Apr 29, 2014 at 08:50:56 AM PDT

      [ Parent ]

      •  you are correct on a technicality (2+ / 0-)
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        lunachickie, codairem

        using your stated entry and exit points.  It is also true that most people have neither the time nor inclination to actively manage their holdings. So buy-and-hold is a necessary evil for most people.  OTOH, is it also true that the public in general tends to get sucked in a the peaks and suckered out at the bottoms.  Moreover, as measured by risk adjusted return, buy-and-hold is an inferior strategy as compared to even a extremely simple market timing method http://papers.ssrn.com/...

        •  I don't see how this is a technicality (0+ / 0-)

          you asked for returns over the last 15 years, which had two harsh crashes, which is generally unprecedented, and there was still a significant positive return. Respected people like Buffett, Bogle, and etc think buy and hold is a superior strategy.

          You have the right to your own opinions, but not your own facts. "I never did give anybody hell. I just told the truth and they thought it was hell."- Truman

          by trumanesque on Tue Apr 29, 2014 at 10:58:06 AM PDT

          [ Parent ]

          •  what I actually said was (0+ / 0-)
            crashes over the last 15 years have spoiled your thesis
            The reason why that spoils your thesis, and that you are correct only on a technicality, is that anyone who for personal reasons had to withdraw money during an adverse time, or who got scared out, or who did not have a favorable entry point, did not benefit from these theoretical returns.  For a risk averse and educated investor, enduring such crashes is unacceptable and unnecessary. This is demonstrated by the method at the above cited link, for example (and there are even better methods).

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