This week marks the highest close on the Dow Jones Industrial Average since it was founded on May 26, 1896.
Since inception at 40.94, it has been the beacon of capitalism.
Why anyone would attempt to dance in and out of the market is beyond comprehension to me.
Interesting how the recent financial crisis low was also hit in the month of March. From 6,547 in March 2009 to 14,397 today, the Dow has more than doubled (excluding dividends).
Moreover, from the last all time high set in October of 2007, a hypothetical buy and hold investor still would have made money as long as they did not get scared out of the index and reinvested all their dividends. (Please be advised that you cannot invest directly in the Dow Jones Industrial Average since it is a market index. The index does not include fees, expenses, dividends or transaction costs. If only investing were this simple!)
Remember all those "financial experts" predicting the death of buy and hold investing throughout the downturn from 20007 to 2009? I guess buy, hold and rebalance is a sound investment strategy after all.
It sure beat the alternative-market timing, long and short funds or tactical allocation.
Worse, when you or your financial advisor engage in active trading, you end up paying the IRS more money in the form of short term capital gain taxes and you help Wall Street market makers hit their year end bonuses.
Here's a link to the ten trillion dollar move from Pension and Investments