Caveat 1 is that your implied model is continuous growth of the underlying investment (say, the US stock market represented by S&P500) with more-or-less constant trend. Given this, you should buy if you think the current price dropped below the long-term trend (e.g. 2008) and sell if you think the price rose above the same trend. If this model is correct, the trading strategy will work (we’re ignoring risk for the time being). But if the model turns out to be wrong, well then...
Caveat 2 is that you’re implying that you have a considerably longer time horizon than other market participants. Hedge funds might play a similar game, but they have to deliver returns to investors and a hedge fund which just bleeds money for months and years with nothing but a promise that someday it will redeem itself will not last long. There are investment entities which can take a very long-term view (e.g. sovereign funds), but they are not the rule.
Yes, with caveats.
Caveat 1 is that your implied model is continuous growth of the underlying investment (say, the US stock market represented by S&P500) with more-or-less constant trend. Given this, you should buy if you think the current price dropped below the long-term trend (e.g. 2008) and sell if you think the price rose above the same trend. If this model is correct, the trading strategy will work (we’re ignoring risk for the time being). But if the model turns out to be wrong, well then...
Caveat 2 is that you’re implying that you have a considerably longer time horizon than other market participants. Hedge funds might play a similar game, but they have to deliver returns to investors and a hedge fund which just bleeds money for months and years with nothing but a promise that someday it will redeem itself will not last long. There are investment entities which can take a very long-term view (e.g. sovereign funds), but they are not the rule.