Buy and hodl is relevant no matter what the market is doing. Here are some reasons why:
Higher average returns: This is simply due to compounding, where over the long period, investments, especially equities, generate high ROI
Taxes: Buying and holding enable investors to get a favourable rate on capital gains taxes. Since capital gains are only taxed after the investment is sold, long term investments will allow investors to delay it until when it is sold. This is not possible for short term investments because investors will sell their holdings multiple times, and therefore, investors will pay more in taxes
Reduced costs: Much like the taxes, selling and buying constantly incurs transaction costs, and the more you trade, the more you spend on the fees. Buy and hold favours investors in terms of lowering those costs as there will be fewer trading
Even though “buy and hodl” is pretty time consuming and not immune to losses/fluctuations, it’s still one of the best strategies out there. You just have to be patient.
This is not a financial advice. Take care guys.