mickeyd
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
"Frequently, when a certain sector outpaces the rest of the market, it suffers a sharper snapback when the market declines," Mr. Sauter said. "Sometimes, a market segment is subject to a little more 'irrational exuberance' on its way up and subsequently recedes to its true fundamental value during the pullback.
"Investors should recall the last bear market and their feelings as the bear market progressed. As the market continued downward, many investors probably felt a stronger and stronger urge to get out. Now, looking back with clear hindsight, we know that when the pain is most acute, you're probably close to the time to get in, not out.
"Don't make big changes in your long-term investment program because the market has gone down or up over the recent past," Mr. Sauter said. "I know it's old news coming from Vanguard, but 'stay the course' is still a sound approach."
Pretty sound advice, however I doubt that it is a real revelation to all of the many semi-experts who visit this forum. A good read none-the-less.
http://www.vanguard.com/VGApp/hnw/VanguardViewsArticle?ArticleJSP=/freshness/News_and_Views/news_ALL_bigpicture_11292006_ALL.jsp