Econ Profs Question Conventional Buy-and-Hold Wisdom

Tuesday, June 2nd, 2009

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Marshall Nickles, EdD

Marshall Nickles, EdD

Ray Valadez, EdD

Ray Valadez, EdD

In this video interview, Marshall D. Nickles, EdD, and Ray M. Valadez, EdD, both professors of economics at the Graziadio School of Business and Management, discuss the findings from their paper, “Enhancing Returns in a Volatile Global Stock Market: A Time Limited Approach to Risk and Reward,” which won the Best Paper in Finance Award at the 11th Annual Conference of the Global Business Development Institute in March.

The recent shocks in the financial markets and declines of the stock markets around the world have caused many traditional investors to question the wisdom of a traditional buy-and–hold strategy. While it is an approach that many investment advisors promote, Nickles and Valadez believe that by investing only during certain months of the year (that is, the seasonality approach), risk exposure can be minimized while at the same time, returns may be enhanced.

Questions for Marshall Nickles and Ray Valadez

Why is it not a good idea to stick with the traditional buy-and-hold strategy of investing in this economic climate?

Why can’t we rely on portfolio diversification to get you through this bear market?

What is the seasonality approach?

Do you expect the seasonality approach to work as well in the future?

How can investors benefit from the results of your research?

Related in the GBR

Seasonality and the Stock Market by Marshall D. Nickles, EdD

Does Market Efficiency Trump Behavioral Bias in Finance Decisions? by L. Wayne Gertmenian, PhD, and Nikolai Chuvakhin

Presidential Elections and Stock Market Cycles by Marshall D. Nickles, EdD

Developing a Barometer for Workplace Attitude by Ray Valadez, EdD

Topic: Economics, Finance, Investing, Videos
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Comments

Buy Cheap Stock

November 6, 2009 at 3:41 PM

It seems like the days of ‘buy it and forget it’ are over. Warren Buffet really put the exclamation mark on this in Oct/Nov 2008 after buying GE stock and watching it tank! Guess we’ll have to focus on dollar-cost-averaging.

This is a really good blog.


Wealth Advisor

November 4, 2010 at 4:41 PM

Excellent presentation – and MORE TRUE today, as the Bear Market continues – than when it was written. Thank you.