I totally understand this..."When designing a portfolio that meets your risk tolerance, you as an investor need to realize that a portfolio of 50% stocks likely obtains approximately half the gain when the market advances, but suffers only half the loss when the market declines. "
FIREd April 2007. Set AA to 50/50. Crazy for age 48 with a pension in place and another coming in late 2014 ? Perhaps. When you're one deep (widowed, no spousal $ backup), a girl has to be careful. Very careful.
Along comes 4Q08. Overall portfolio unrealized loss approx 25%. A bit of a stomach lurch but at least it wasn't a 50% drop.
Along comes the rest of the story to 2015...that 25% loss went away very quickly. Whew !
Just an example in a short time span of 8 years. Still sticking to my 50/50 rule. What I may miss in market surges is compensated for by a good night's sleep.