Value investors like Warren Buffett love to hear about how the latest investment strategy will out-perform their tried and true methodology of buy-and-hold. And in principal that method makes sense because people are irrational and the markets are volatile.

But as the last ten years have demonstrated, buy-and-hold may be logically sound, but it may no longer be a viable investment strategy. Between June of 2005 and June 2010 the S&P 500 index dropped 10.4%, and between June of 2000 and June of 2010 the index tumbled 26.0%.

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