Is buy-and-hold dead? E*TRADE (NASDAQ: ETFC ) would like you to think so.
In a video on the brokerage's website, the company declares that "buy-and-protect" should be the new focus for investors. A recent post on Citigroup's (NYSE: C ) blog echoed similar suggestions and advised to simply confine heavy trading to retirement accounts to avoid taxes. Why would these companies not promote a buy-and-hold strategy? Fees, of course!
The more investors churn over their portfolios, the more fees and commissions brokerage houses collect. Excessive trading can quickly eat away at returns.
In this video, Motley Fool analysts Matt Koppenheffer and David Hanson debate the merits of buy-and-hold and if these companies are wrong for promoting more trading.
Citigroup's stock looks tantalizingly cheap. Should investors be treading carefully, or jumping on an opportunity to buy? To help figure out whether Citigroup deserves a spot on your watchlist, I invite you to read our premium research report on the bank today. We'll fill you in on both reasons to buy and reasons to sell Citigroup, and what areas that Citigroup investors need to watch going forward. Click here now for instant access to our best expert's take on Citigroup.