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Pimco founder Bill Gross said on CNBC that "buy and hold" is dead.
He said stocks over the long run will no longer boast average annual returns of 6% but, instead, more like 2%. That means the Dow would be at 11,900, not 25,600, in 20 years. Looking back, the Dow was around 2,500 in 1989. If it would have gone up by an average of only 2%, we would be at 3,700 today. Oddly enough, it went up by 6%, and here we sit at 8,000.
What does that mean for investors? Is Gross right? Are stocks a dead or slowly dying investment? ...
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| Dow Jones | S&P 500 | NASDAQ | 10-Year Note | |
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