re: Buy and hold

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Why hold dips? Why take two steps forward and one step backward over and over again? Why not take two steps forward, pause, and then wait until it's time for you to take another two steps forward. Buy and hold investing is a product of the pre-Internet, pre-online trading account investor of the 80s and earlier. When it would cost you 500 to execute a trade and the process required long, drawn out phone calls to guys in New York on the stock exchanges, yeah buy and hold may have been the way to go. But that type of investing is quickly going the way of the dinosaur when it comes to individual investors.

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Some on this board might have held some securities or funds for 15-20 years and have large embedded capital gains. I think many have a portion of their equity holdings as long term buy and hold due to gains and/or increasing dividend streams, and tactically allocate the other risk taking portion of the portfolio based upon current valuations and market events. In tax advantaged accounts I have no qualms about taking gains, in taxable it could be a different story. That's what I do and why I don't adhere 100% to the financial planning mantra of holding all fixed income in tax advantaged accounts, that's what muni's are for and it relieves a lot of tax record keeping. To each his own.