I really like your comment, Wagner, and I agree with it all ... except I would change the word "underperformance" to "loss."Wagnerjb wrote:Sadly, the investors who cannot control their emotions (or don't have the right AA for themselves) are the ones who suffer the underperformance. The disciplined investors who stuck with an appropriate AA and rebalanced during the market lows are doing much better..
To my mind underperformance is too much a comparison with the other guy, a guy who may be carrying a lot more risk than you. He may just have been lucky that his particular exposure didn't come up.
If I can manage a steady 8% (assuming 3% inflation) I'm not going to sweat that someone else does 10% on average, and particularly not that somebody does 30% on one YTD.