What Is The REAL Result of a Buy and Hold Strategy? 1000 Different Random Portoflios
Free Amibroker course: http://www.asxmarketwatch.com/2012/06...
Hi, thank you for watching! I think you are fantastic. This video shows us the actual statistics behind a Buy and Hold strategy in the stock market, by taking 1000 different random portfolios and holding them over the last 15 years.
We look at the average annual return, as well as the maximum and minimum annual return, and then the maximum drawdowns (how much money you can lose using this strategy) for each one as well.
The last 15 years includes bear markets, flash crashes, roaring bull markets - the full spectrum of possibilities, so it's a great timeframe to get the real statistics.
The best part is: A buy and hold strategy really works. We found the most common result was 10% to 12% per annum. The only caveat was that you would have to be able to stomach a 70% loss in your portfolio at some point, before it recovered.
I hope you enjoy, and "happy trending" until we meet again!