In what scenario would an investor likely utilize a "buy-and-hold" strategy?

A "buy-and-hold" strategy is commonly employed by investors who are aiming for long-term growth. This investment approach involves purchasing securities and holding them for an extended period, regardless of short-term market fluctuations. Investors adopting this strategy typically believe in the long-term potential of their investments, focusing on the fundamentals and anticipated growth of the companies or assets over time rather than reacting to immediate market changes.

This strategy is particularly effective in stock markets, where historical trends show that, despite short-term volatility, stock prices tend to increase over the long run. By avoiding the temptation to sell during market downturns and instead holding onto their investments, investors can benefit from compounding returns and the overall appreciation of their investment over time.

In contrast, other scenarios might not align with a buy-and-hold approach. For example, seeking quick profits suggests a more active trading style that would prioritize short-term movements instead of long-term holdings. Similarly, while market volatility can be a concern, it does not necessarily justify the buy-and-hold strategy, as high volatility might encourage more active trading to capitalize on price movements. Investing in bonds might also not be specifically linked to a buy-and-hold strategy, as it can be employed across various asset classes, but it does