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Econ Profs Question Conventional Buy-and-Hold Wisdom

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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

Author of the article
Marshall Nickles, EdD, Professor of Economics
Marshall Nickles, EdD, Professor of Economics
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