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Daily Archives: February 27, 2009

Answering Readers’ Survey Questions

February 27, 2009
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Two weeks ago, many of our Cabot Wealth Advisory readers kindly filled out a survey and, in doing so, asked several great investing questions, some of which I’m going to tackle today. Please feel free to send us any other questions, comments or suggestions you might have in the comments section below. Question: What are some low-risk strategies that I can employ during a market downturn? Answer: At Cabot, most of our editors practice a system of growth investing that uses market timing to determine when to stay in the market and when to get out. So our advice...

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Is 2008 the Year Buy-and-Hold Came to Die?

February 27, 2009
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Many value investors adhere to the old buy-and-hold forever theory.  The past year, though, has been a brutal time to be a buy-and-hold investor.  According to Morningstar, 95% of all mutual fund managers lost more than 27% last year.  Holy cow! The Standard & Poor’s 500 Index (before dividends) dropped 21.85% for the 10 years ended December 31, 2008.  The buy and hold strategy that many value investing gurus recommend has clearly not worked well during the past 10 years.  Jeff Macke on CNBC’s Fast Money went so far as to proclaim “2008 will go down as the year...

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