Timely post from Dirk Cotton on the subject:
The Retirement Café: What I Do When the Market Tumbles
Specifically:
Quote:
If you have such a high allocation to equities that market declines make you anxious, you own too much stock. Find the allocation at which severe bear market losses won’t keep you up at night.
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Emphasis added.
and
Quote:
To be completely honest, I wasn’t aware that the market had fallen 8% so far in January until my wife told me late this week. I don't watch business news – life is too short...I don’t labor over my portfolio value daily. I probably check it four times a year, at most. I retired to enjoy the remainder of my life, not to fret over the stock market.
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Emphasis added. I wasn't aware the market had fallen 8% either, nor do I care. I reduced my SWAN PF AA to 40/60 last year for this very reason.
Also see the other links in his post for advice from other authors on market turmoil.