Columbia Management Group has introduced the Columbia Thermostat Fund, a fund whose investment mandate permits it to reallocate between five stock and three bond mutual funds.

"Buying against the trend – selling strength and buying dips – aims for modest, steady growth that we believe may help out even out the sharp moves in the stock market," said Ralph Wanger, creator of the fund. "The buy-and-hold strategy has worked marvelously in bull markets," agreed Chuck McQuaid, a member of the fund’s advisor board. "However, there have been long periods in the past when buy-and-hold was not the best strategy, such as 1930-1954 and 1969-1981, when the market fluctuated but did not make significant new highs."

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