"There are two things that the past ten years should have made abundantly clear by now, which is that a buy and hold strategy (B&H) is a recipe for disaster in a secular bear market, and that one cannot ignore the message of the market when it is shouting at you. Knowing the investment climate is pivotal as investment approaches have different outcomes in different climates. A B&H approach is one of the best strategies to have during a secular bull market (think 1982-2000), while a trading/market timing strategy is a better approach during a secular bear market (2000-present). Given that we are still within the confines of a secular bear market where real stock prices peaked in 2000, secular bear market rules apply and risk management should become a top priority."
Remember the Dow/Gold Ratio???