It very well could...if you have my luck it is guaranteed to go down more. (Small anecdote, I literally tell myself (now) that as soon as I start any new trading/investing plan it will immediately have one of its worst losses ever. For some reason that seems to help mentally as it usually does occur. :-) )Mr Vacuum wrote:I finally bought a little more TMF in my little VP started 7/15. It was down to about 10.4%, very close to the band, and Fidelity just dropped a few bucks off commissions. I'm sure it will continue to drop like a rock now.
Seriously though, have a plan, have lots of cash (at least 50%), stick to whatever rebalancing rules you have. Only put into this portfolio the amount you can mentally and emotionally stick with. If you have to, do baby steps/amounts until you gain confidence or lose it with hopefully only a small loss.
My personal experience 2014 not bad, 2015 awful (around an 18% max dd with -10% for the year) while last year was great. I haven't had a single rebalance that "felt good" but it is much easier to pull the trigger now. There's really no guarantee this stuff is going to work. If the PP continues to work, I'm not worried at all. But as I have repeatedly posted...this is not your grandfather's PP and it will not be a smooth ride particularly at the individual asset level