The free ride in the market is over – for those investors relying on the sage advice of buy-and-hold. Don’t expect to make money in the future buying just about anything. What happened two years ago when stock prices fell through the floor was extremely atypical for stocks. The market will likely be much more discriminating in determining whom it allows to be a “genius.”
Investors will have to know what they’re buying. They’ll have to know why they’re buying it and best of all, they’ll have to know when to sell it. They’ll have to make these tough decisions when the free ride comes to an end, as with what we’re seeing now.
Choppy, manipulated markets put a premium on knowledge and information. And that means reevaluating what you own, upgrading your portfolio if need be, rebalancing to control risk, and restructuring your portfolio to reduce volatility.
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