carolinaman wrote: ↑
Sat Oct 13, 2018 7:40 am
+1. You need to have an AA that fits your risk tolerance. A long term investor knows that there will be major drops in market from time to time and has an AA that he/she is most comfortable with in up and down markets. Find an AA that allows you to be more comfortable during down markets. Down markets can be nerve wracking for even the most seasoned investor but they know that "staying the course" is the best thing to do.
Also, I do not accept your premise that "most people" believe we will see a major decline soon. I am 100% confident we will see a major decline at some point. I am also 100% confident that the market will recover from that. I do not know when either of those will occur and neither does anyone else. News sources love to run articles about this sort of thing because it gets people's attention. You could have read those types of articles anytime during last 5 years. Timing the market is a fool's errand. You have to get it right twice: when to get out and when to get back in. Few people are successful at that.
Talking about good invest practices is like talking about good nutrition....
--Eat your vegetables / live below your means
--Don't eat too much junk food / don't take on too much debt
--Don't drink too much / take on more risk than you can handle
--Get enough sleep / stay the course
...its inherently boring, repetitive, and makes for bad TV and entertainment.
It's much more exciting to focus on the drama.
If you really, really, really need to feed your financial industry news addiction, watch the news from other countries. There is a lot less "Cramer" and a lot more boring facts.
Tax Sheltered: 35% US Stock | 35% ex-US Stock | 30% TTM || Taxable: 35% US Stock | 35% ex-US Stock | 15% TTM | 15% Munis