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Posted almost 14 years ago

Mark Cuban: Buy and Hold is a Crock of ****!

We've long held the belief that what's currently happening in our economy isn't just another market cycle. Rather, it's a drastic economic shift that is going to leave lasting effects on the way that we're going to have to think and act as individual investors. "Buy, hold and pray" has now proven to be an unreliable strategy for growing wealth over the long-term, and a much larger number of experts, pundits and credible individuals are now starting to sing the same tune. Alternative investments like Trust Deed Investments or Tax Liens  may not be considered to be 'alternatives' at some point in the future. Instead, these types of investments that offer safety, security and consistent returns may become a mainstay of wealthy investors' portfolios and a relied upon source for wealth preservation and creation. As our marketplace continues to fundamentally erode the possibilities for average investors to have blind success are going to diminish, and unfortunately that means that not giving a care to your investments and leaving to your stock broker may no longer be an option sooner than we think.

These are unprecedented times and there is no doubt that we're not going to be able to rely on the stock market to provide for our retirement. However, alternative assets like Trust Deed Investments don't exist just because the stock market isn't a viable investment vehicle. They exist because they're sound, reliable strategies that aren't typically well-known by and available to the average investor. However, today more than ever before the world of alternative assets is becoming more tangible to the average citizen as investors flock to find new opportunities in this marketplace that will shield them from Wall Street volatility and give them some assurance that they can sleep well at night knowing their money is safe. And, if you begin to listen to certain experts that know what they're talking about, you'll start to hear them endorsing the idea of taking an early exit from traditional thinking and exploring other options.

Sometimes it's tempting to take Mark Cuban, the outspoken and boisterous billionaire, with a grain of a salt. To some he seems offensive. To others he seems like a kid that never grew up. To Dallas Maverick fans he's the greatest thing since sliced bread. But regardless of his persona and the stigma that comes with it, the fact of the matter is that he didn't get to where he is by accident. He's one of the world's few self-made billionaires and he knows a thing or two about the way that money works. He made quite a splash recently on "The Big Interview" where he boldly claimed that the average investor doesn't stand a chance in the world of stock market investing. Specifically, he claimed that the investing strategies of old are "for suckers" and that people need to change their way of thinking if they're ever going to get ahead in the market. His now famous quote from the interview goes as follows: "Buy and Hold is a crock of ****!"

You can watch the interview directly from the Wall Street Journal website.

If what Mark is saying is true, and we absolutely believe that it is,  then it's fair to conclude a couple of different things:

1. The average investor has absolutely no advantage in the stock market. In fact, they have a large disadvantage.

2. Our oldest held beliefs about diversification and holding for the long term may need to be changed sooner rather than later.

3. The greatest risk that we can take is to hold on to the belief that the stock market will always bounce back and provide wealth over the long-term.

  If you've never explored the world of alternative investments, you owe it to yourself to see what alternative strategies like Trust Deed Investing and Tax Lien Investing can do you for your portfolio.

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