The rise of equity ownership in the United States, fed by the Internet, low-cost discount brokerages, and self-directed retirement vehicles like 401(k)s and IRAs, has brought along with it heightened expectations.
When SPDRs
Blue Chip |
10-Year Return |
---|---|
Microsoft |
(42%) |
General Electric |
(60%) |
Coca-Cola |
(25%) |
Disney |
(13%) |
Dow Chemical |
(57%) |
Data from Capital IQ, a division of Standard & Poor's.
As the table above demonstrates, even stalwarts have taken a bath over the past decade.
Granted, June 1999 was a frothy time for the market, but critics of the long-term buy and hold philosophy can point to three-month returns that blister 10-year returns:
Blue Chip |
3-Month Return |
---|---|
Microsoft |
33% |
General Electric |
59% |
Coca-Cola |
23% |
Disney |
52% |
Dow Chemical |
171% |
Data from Capital IQ, a division of Standard & Poor's.
Many people are pointing to the recent volatility in the market and dismal 10-year returns and arguing that investing paradigms have shifted.
For the next few weeks, investment experts and Fool advisors, analysts, and editors will be weighing in with their thoughts on the future of "buy and hold." But we also really want to hear from you. Answer the poll below, and let us know the reasons for your answer in the comments section at the bottom of this article!