BUSINESS
05/29/2010 05:12 am ET | Updated May 25, 2011

Why 'Buy & Hold' Investing Is Dead And Recessions Are The New Normal: Lakshman Achuthan (VIDEO)

The classic "buy and hold" strategy for stocks is officially dead, according to Lakshman Achuthan, managing director of the Economic Cycle Research Institute, who sat down with Yahoo Tech Ticker recently. And, Achuthan said, investors should prepare themselves for even more frequent recessions. (We realize it's great news.)

Two big patterns moving like "big ol icebergs" will create more frequent recessions, Achuthan said. The first pattern, Achutan says, is the pace of each expansion after a recession actually gets weaker and weaker -- and this effect applies to GDP, sales and income. "On every count, the strength [of growth] weaker and weaker with each expansion," he added.

The second pattern is that volatility will be a fact of life. "We're going to see more boom and bust type cycles, I don't think it's going to be like the pre-Depression levels. It will be more like the cycles we saw in the 1970s, where we're going to have an expansion for a few years then another recession."

"We're going to have to reorient our thinking to maybe a little more whiplash," Achuthan said

Check out the interview here: