Was 2015 the final nail in the coffin for buy-and-hold investing? Not necessarily. Buy these seven names and hold for 2016, then, for max returns, let them go before ringing in 2017…
The carnage of the 2015 market spared few, and was particularly brutal for the buy-and-hold crowd. Any position held for more than a few months was absolutely crushed.
This reduction in holding period was a real eye opener, even for those that already disavowed a buy-and-hold strategy.
Regardless, one year of difficulty shouldn’t sway those that are averse to long-term investing, yet understand that some amount of time is necessary to reap the reward of your risk taking in the equity market.
Fact: the market rarely repeats the past.
If it did, investors would always look to history for guidance in their investment decisions.
What will 2016 bring to investors? Wall Street decidedly believes more of the same, or history repeating. I agree with that assessment, but how we get there will be entirely different.
This year’s losses were so bad that it’s hard to see the bears continuing to feast on these beaten-down names.
The major market averages may be flat in 2016, but there will be select winners.
As always, those winners will likely have one commonality: shares that are cheap relative to expected profit growth.
We call that the PE Gap, and PE Gap stocks will be our guide to the winners for 2016.
Here are the top seven to buy and hold—for one year only…