Tag Archives: buy and hold

Tips for trading ETFs in TAA portfolios

I get a lot of questions about the mechanics of buying and selling the ETFs that comprise the tactical asset allocation (TAA) portfolios that I discuss on the blog. In this post I’ll address some common concerns and issues with respect to ETFs and share some tips for trading them in TAA portfolios. When implementing buy and hold portfolios with ETFs the predominant concern is the management fee of the ETF, especially with an infrequent rebalancing approach. For example, with an annual rebalancing methodology at most there would be one trade per ETF per year. Other common trading concerns such … Continue reading

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The biggest lie in finance – buy and hold

There are lots of lies in finance or more subtly put, a lot of things wrong with conventional wisdom. I have trouble deciding which lie is the biggest but definitely one of the candidates is ‘Stocks for the Long Run’ which usually means that buying and holding the market index is the best way to generate wealth over the long term. Basically, this lie is made of two parts; that buy and hold is a superior investment strategy over the long term and that passive investing is also superior over the long term. The problem is that these are true … Continue reading

Posted in Portfolio, Retirement | Tagged , , , , | 4 Comments