Buy & Hold's Lost Decades

Matthew Allgood |



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Buying and holding can lead to significant emotional & investment pain for investors. Market downturns can be a prolonged and painful experience, further intensified when considering inflation.


Historically, there have been significant periods known as “lost decades” like 1929, 1968, or 1999 where $1,000 would have shrunk to less than $400 throughout the decade. And the path to recovery could take even longer, prolonging the painful experience. These periods of dramatic underperformance highlight the potential risks associated with a solely passive investment strategy.


This is exactly why we incorporate active risk management to avoid such pitfalls. Your trust in our strategy allows us to navigate these complexities, aiming for a smoother financial journey.


Buy & Hold's Lost Decades

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Source: Bloomberg, U.S. Bureau of Labor Statistics (BLS), Redwood. Data as of 5/29/2024. Date Range from 12/31/1927 – 4/30/24.



Allgood Financial

Disclosure: This piece is for informational purposes only and contains opinions that should not be construed as facts. Information provided herein from third parties is obtained from sources believed to be reliable, but no reservation or warranty is made as to its accuracy or completeness. Charts and graphs are for illustrative purposes only. Discussion of any specific strategy is not intended as a guarantee of profit or loss.  Past performance is not a guarantee of future results. The objectives mentioned are not guaranteed to be achieved. Investors cannot invest directly in any of the indices mentioned above.


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