“I was at the post office today and overheard someone comment that the stock market was way down, something like 400 points,” wrote a client to me last week. “I just wanted to let you know we’ll be heading south for the winter and I need you to change my address. Glad to know you’re handling my money and not me!”
It’s interesting how some investors live and die by the daily swings in the market. They either have too much riding on it, or enjoy watching it fall because they got out six years ago at the bottom and can’t believe how they’ve missed the boat. Both feelings are rotten and not helpful to your peace of mind. A better approach is to gauge how you feel in down markets and adjust accordingly. If you felt stressed out in the most recent pullback then maybe you have too much in the market. The next pullback might be more meaningful.