This weekend, Carol and I were reviewing a report on our retirement funds from our investment advisers, Investors Solutions. (Rob Gordon and Ana Maria Martinetti-Katz are our helpers there.) All the losses from the 2008 stock market downturn are restored, not because of investments we have added, but simply because we were well diversified and rode out the cycle, thanks to good advice and direction.
A friend of mine and his wife, who had approximately the same mix of stocks and bonds, sold all their stocks at the bottom of the market and replaced them with fixed income investments. This course of conduct was against advice they received from their advisers also to stay the course. This couple is not back where they were in 2008.
I readily admit that no one knows what next week will bring. But wide diversification, relatively low investment fees, faith in the future, and encouragement from competent people whom you can trust certainly help one to ride out the storms.