When the markets are unstable, it can be tempting to buy and hold dollars as a safe haven. This strategy is especially popular among corporate bond holders and safety-seeking investors. The dollar is the world’s most valuable currency, so any country that owes the U.S. a debt would be wise to hold dollars. The theory behind the popularity of buy and holds is based on the “buyer of last resort” concept. The United States is a large consumer market, so any country that owes its economy to it must maintain a deficit in their currency.

Investing in a buy and hold strategy can be profitable. During a downturn, investors can take advantage of low-priced stocks to generate a steady income. In the long run, they can invest in higher-yielding companies and build wealth. This strategy is often described as a hedge against inflation. While it doesn’t work for every investor, it can help you achieve your financial goals.

Another strategy that is extremely popular is buy and hold. Using a buy-and-hold approach to investing can produce long-term gains. Because buying and holding assets is a long-term strategy, investors can use them to plan for retirement. When it comes to buying and selling stocks, it’s best to avoid high-risk stocks and choose conservative indices. In addition to risk-aversion, this strategy may even work well for investors with a low tolerance for volatility.