More Sage Advice

In our recent issue of Dimensions, we shared with our clients some wise advice from well known experts on what investors should do in light of the turbulence of the markets. We did not have sufficient space to provide the opinion of as many of these experts as we would have liked. Here are others worthy of contemplation.

Henry Blodget
Reformed Internet stock cheerleader and author of The Wall Street Self-Defense Manual
Don't pick stocks. Don't time the markets. Don't change strategies as market conditions change. Do continue to invest a set amount each month in a diversified portfolio of index funds covering all major asset classes. If an asset class tanks, take advantage of the opportunity to buy more cheaply by re-balancing.

Terrance Odean
Professor of banking and finance, University of California, Berkley
Try to take your mind off the market. Got to the beach or if you are so unfortunate as to live on the East Coast or in the Midwest, go to a movie.

William Goetzmann
Professor of finance and director, Yale's International Center for Finance
Calmly assess if your portfolio is diversified. If it is, that's the best you can do. You may get lucky switching to cash or you may not, but history suggests a diversified portfolio with a significant share in equities will do well in the long-term.