Coping with the volatility of the stock market is never easy, but it is easier with a solid foundation of knowledge. The past year and a half has confirmed this belief. Every long term investor (who is willing to admit it) has questioned a buy and hold strategy in some fashion during the past year and a half. Like anything in life, questioning your beliefs can make them stronger. We have been and will continue to be tested. Each time we question a buy and hold strategy, the unpredictability of markets re-confirms our beliefs. The market moves too fast and too unpredictably. We believe the most prudent investment approach remains a well-diversified portfolio, with the proper balance between risk and return. Time will take care of the rest. The following link does an excellent job answering the following questions - Is it different this time? Why didn't we see this coming and do something about it? Why don't we wait until the recession is over to invest? and What do I do know?
http://www.dfaus.com/share/whatshou/
If you have the time, it would be worth your while to review the slide show and audio linked above. Feel free to pick and choose the slides/topics you find of interest. We hope you find it helpful.
