Question

Buy-and-hold investors put their faith in the ability of the overall market to continue the long-run upward trend it has exhibited throughout its history. One way that many buy-and-hold investors do this is by ____.

Answer 1

Buy-and-hold investors often invest in index funds to participate in the long-term growth of the overall market.

Step-by-step explanation:

Buy-and-hold investors put their faith in the ability of the overall market to continue the long-run upward trend it has exhibited throughout its history. One way that many buy-and-hold investors do this is by investing in index funds.

Index funds are mutual funds that seek to imitate the overall behavior of the stock market. They purchase an array of stocks and/or bonds, providing investors with a return depending on the fund's overall performance.

By investing in index funds, buy-and-hold investors are able to diversify their investments and reduce the risk of relying on individual stocks. This strategy allows them to participate in the market's long-term growth without the need to constantly pick and choose stocks.