Buy and Hold Wealth Tracker as of close February 29, 2016
Monday, February 29th, 2016February 29, 2016…. at market close
SPY’s closing price $193.69 for February 2016 was below SPY’s 200 day moving average…..$201.17
According to the SPY, month end, 200 day trend model, the average investor should have been and be on the sidelines , in cash or equivalents waiting for possible market re-entry after the close March 31.
$1 million invested in SPY at its December 31, 2015 closing price,$203.87 would now be worth $950,066 reflecting a decision to remain in the market despite the December 31 sell signal. As of the close today, that decision to Buy and Hold would amount to an unrealized loss of $49,934, 4.99%.
On the other hand, if the December 31 sell signal had been respected and a market exit effected on the first trading day in January, the unrealized trading loss would be and could remain at $16,500….1.65% until market er-entry.
In my opinion, what the above illustrates is that you better have a strong stomach and plenty of patience if you decide to Buy and Hold.
Lets see how this turns out as time goes on.
Richard Maurice Gore