At WBI, we believe preserving capital to unleash the powerful benefits of compounding is the most important element of a successful investment approach. Yet for many years, investors have been led to believe conventional buy and hold wisdom featuring a well-diversified, low-cost passive index approach is the key. While this works well in a bull market when investing looks easy, it can cause people to bail and fail as bear markets expose their savings to more risk and loss than they are willing to tolerate.

According to research, bear market cycles tend to appear every 6 years. The current bull market has been running for 10 years. Will you be ready for the next market cycle? 

Since 1900, significant market declines occur more frequently than people think.​

Source: Capital Research and Management Company, 2018. Indices are not managed and may not be invested in directly. Past performance is not indicative of future results. ¹ "How to Face the Next Bear Market with Confidence." U.S. Global Investors. Web. June. 27 .2018

Every four years, the market declines 20% and every six years 40% on average. From the 2007 market high to the 2009 low, the Dow Jones Industrial Average declined 53.78%.

Buy and hold theory was founded on a 1970s study suggesting if you try to avoid large losses, you will miss the 10 most powerful positive days of return. Without those days, the 40-year-old theory says, investing is not a worthwhile endeavor. WBI believes investors continue to be harmed by a flawed buy-and-hold philosophy that focuses on returns instead of preserving capital and the power of compounding.

The Problem with Buy and Hold

Best and Worst Quarters Study

Over 30 years ago, in search of a better way to invest, WBI rationalized the flawed “best 10 days” buy and hold study to see how the 10 best or worst quarters affect an investor over a lifetime of investing. We assumed a hypothetical investment of $100,000 in the Dow Jones Industrial Average from 1950 through 2018.

Here is what we learned

The results from WBI’s original best and worst quarters study formed the basis for WBI’s hallmark active risk-managed investment process. We offer investors an alternative to the typical bail-and-fail experience they can have when trying to buy and hold during bear markets. 

Your Investment Would Have Suffered

Compared to the approaches that focused on avoiding loss, buy and hold garnered significantly less capital.

The Power of Risk Protection

Missing the 10 worst quarters turned out to be 7 times more powerful than a buy and hold approach turning $100,000 into nearly $83 million.

Investors Can Build More Capital

As it turns out, even if you had to give up the 10 best quarters to miss the 10 worst quarters, you would have built 40% more capital than a buy and hold investment in the Dow, ending with $16,278,855.

Investors are Told to Buy and Hold, but Do They?

Investors need to be successful if they ever want to achieve their retirement goals. Yet studies show that many investors are failing. Why?


In order to reach important life and financial goals, you may want to consider investing in dividend-paying stocks. Price appreciation over time can enhance growth, especially when reinvested dividends are steadily increasing share balances. WBI’s products invest almost exclusively in dividend- paying stocks in order to help investors reach important life and financial goals. We believe we can help investors preserve capital and minimize risk.

Dividends Can Be Powerful

Source: Ned David Research, 2017. Past performance is not indicative of future performance. Indices are not managed and may not be invested in directly.

Unleash Powerful Investment Forces

Reinvested dividends can promote compounding and accelerated capital growth

Break the Mold of Traditional Buy and Hold

Historically, dividend-paying stocks have been less volatile and experience less downside loss than non-dividend paying stocks in bear markets.

Inflation Fighting Protection

Companies tend to increase dividends over time, which can increase investor income to keep pace with rising lifestyle costs due to inflation.

Navigate Bull and Bear Markets

Over full market cycles, stock price appreciation and dividend income can boost long-term performance.

All About Dividend Investing

To learn more about dividends, check out All About Dividend Investing by WBI Founder and CEO Don Schreiber, Jr. and Gary E. Stroik.


Past performance does not guarantee future results.

All economic and performance information is historical and not indicative of future results. This is not an offer to buy or sell any security. No security or strategy, including those referred to directly or indirectly in this document, is suitable for all accounts or profitable all of the time and there is always the possibility of loss. Moreover, you should not assume that any discussion or information provided here serves as the receipt of, or as a substitute for, personalized investment advice from WBI or from any other investment professional. To the extent that you have any questions regarding the applicability of any specific issue discussed to your individual situation, please consult with WBI or the professional advisor of your choosing. This information is compiled from sources believed to be reliable, accuracy cannot be guaranteed. Information pertaining to WBI’s advisory operations, services, and fees is set forth in WBI’s disclosure statement in Part 2A of Form ADV, a copy of which is available upon request.

Although a company may pay a dividend, prices of equity securities – including those that pay dividends – fluctuate. Investing on the basis of dividends alone may cause an investor to buy or sell certain securities when circumstances may or may not be favorable.

Dow Jones Industrial Index: comprised of 30 large, publicly owned, U.S. based companies.

You are not permitted to publish, transmit, or otherwise reproduce this information, in whole or in part, in any format to any third party without the express written consent of WBI Investments, Inc.