The first part of your post (above)....garlandwhizzer wrote:I totally agree with a 100% equity position for those less than 50 who have a stock market stomach. Considering long term returns it is the way to go in my opinion.
.... is contradicted to heck with the second part of your post. In order to"profit greatly from bear markets by buying precisely when the emotionally overwrought herd is panicking and rushing to sell, believing that the sky is falling" and/or otherwise plainly rebalance Asset Classes, is to have diversity in them.garlandwhizzer wrote:Wise investors, there are some, not many, Warren Buffet and Ben Graham come to mind, actually profit greatly from bear markets by buying precisely when the emotionally overwrought herd is panicking and rushing to sell, believing that the sky is falling. That is one reason, perhaps the main reason, that they hold bonds in their portfolios, to rebalance into stocks at propitious moments and take advantage of emotion driven market inefficiencies. As the saying goes, you make your money in bear markets. You just don't realize it at the time.
Additionally, "long term" returns (history, sayonara!) have no predictive value in future return. I guess it shouldn't be surprising to read the many statements from some posters - right in this thread and similar other threads - as if to suggest otherwise.