Originally Posted by bobbee25
Diversify - to what, seems when the market goes down diversity only around the amount of loss, 2% on one, 20% on another .... no offset.
For the long term - if you loose a lot and it will probably come back in 15 or 20 years, how do you sleep during the interm with a big chunk gone. Just keep saying to yourself it should come back one of these years.
Here is the deal. If you are still working, it's a good deal for you - You are now buying stocks at a discount! - You'll be in even better shape when you retire!
If you are already retired, you ran FireCalc and based upon the worst case conditions you are Okay! - The market only dropped 50% - That is not the worst case, so you are in great shape. The P/E ratios have dropped and when you rebalance the next time, you'll be getting those stocks at bargain prices - Still a good deal! If you don't rebalance and buy these stocks, you'll be screwed!
Waiting 15 or 20 years would be normal. Get used to it.
If you don't understand these fundamentals, you'll probably do something stupid!
Again - The market will drop - It's not IF it's WHEN!