bradw2k said (edited)
: Another name for buy-and-hold is: saving. That would be a wise thing to do in a healthy economy, because there would be a positive yield on safe investments. But yield is exactly what the Fed has destroyed. There is no yield, and saving is dead. Wealth creation has been systematically squandered. Your local bank's CD rates tell the whole story. The "investors" who are making gains in this environment are not capitalizing on yields, but on speculating against the next guy. It's a game of grab the better chair on the deck of the Titanic. It still *looks* a lot like investing and saving, and that is part of how the Fed pulled it off, because if everyone *felt* their capital-earning power going down the toilet, there'd be outrage. As it is, those with assets still feel like their "investments" are doing well. Who knows how long this can go on. But over time the fact that the *real* economy (which is not numbers in computers!) has no *real* yield will be a problem felt by more and more people.