Bailing out of the market when it’s volatile creates additional risks to your portfolio.
This is a great piece from Jim Parker, a Vice President with Dimensional Fund Advisors. It speaks about how you should reconcile your investing strategy in conjunction with the volatility we’ve been experiencing lately in the markets. Read it. It helps put current market gyrations in perspective. OTF_Patience_Principle_US
It was late 1988 and I wanted to begin building my investment empire. At the time, I worked in the back office of one of the big financial services wirehouses processing account transfers (exciting!). In our building there was one computer set up in the middle of the floor for stock quotes. A Quotron machine….