dualstow wrote:True, no portfolio is always immune. I just think they''d get hit less often.
Then again, it only takes one hit.
So what do they bail into?
those who bail generally bail to cash and end up getting burned by being out when things recover . some like many of the youngin's in their 401k's never came back . in the mean time many of the funds tripled since they threw in the towel in 2008.
nothing is immune to bad investor behavior . as long as the portfolio can lose money in down years or does not gain as much in the up years there are always those that will bail and run or bail and try something else until that has a down year . .
while there are times i allocate more or less money to the portfolio's i run i may have more less in one model vs another but i have used the same models as a core for 30 years now . i may dabble with something like the gb at times (call it my variable portfolio ) but the core has always been the core ever since 1987.
i kind of used a rising glide path entering retirement , so i phased out my growth model at the start and used my income model and growth and income model but now that the election is over and i have some gains to cushion things i re-introduced the growth model back in to the mix for money i won't be using to eat with for 12 to 30 plus years out .
so the point is adjusting things along the way as a strategy is one thing but bailing out and running is quite another .