Recently I read an extremely intelligent and thought provoking article in Money Magazine. The article was looking into why some poeple don’t believe that the so called “Buy and Hold” investment strategy is working anymore. Charles P. Wallace interviewed Andrew Lo for Money Magazine. Mr. Lo is an economics and finance professor at M.I.T.
He challenges the “Effecient Market” theorem held by economists for decades. He explains that while he doesnt entirely discredit the thinking behind buy and hold investing, he thinks it needs updating. This, he explains is simple because of new risks introduced by extremely complicated global markets. Here’s a link for the interview: