I try to bring a different perspective. Dig in:
EXCERPT: Buy-and-hold doesn’t work anymore. The volatility is too significant. Almost any asset can suddenly become much more risky. Buying into a mutual fund and holding it for 10 years is no longer going to deliver the same kind of expected return that we saw over the course of the last seven decades, simply because of the nature of financial markets and how complex it’s gotten.
EXCERPT: What baffles me even more is that two decades after the collapse of Soviet planning and decades more since the US and economists purportedly rejected the idea of price setting, we find nothing wrong with the Fed setting the price of money. We all agree it is a bad idea to have a board saying the price of wheat should be $250 a ton today, or carpenters’ wages should be $25 an hour until the end of 2014. But we are perfectly comfortable with having a board set the price of one half of every transaction in our economy. And our markets are supposedly free.
EXCERPT: The idea is simple. Psychologists have known for some years that it is almost impossible to speak when your words are replayed to you with a delay of a fraction of a second.
EXCERPT: Imagine trying to lift a barbell with 350 lbs. of weights on it. Even lifting it 6 inches off the ground would be a nearly impossible feat for people who haven’t trained their muscles to lift heavy loads. You’d struggle and nearly burst a vein, but you wouldn’t budge the barbell. But … if you started with just the barbell (no weights on it) and began lifting that, you’d be much more likely to succeed. Then add 5-10 lbs. on each side, and your muscles will grow stronger. Keep adding a little at a time, and soon you’ll be able to lift the 350-lb. loaded barbell that once seemed impossible.
Also, from TED: