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This was my favorite headline from yesterday describing how good stock returns were in the month of January:
No sooner did the ink dry on a rare intra-quarter letter that I sent out to clients urging them not to worry too much about the recent slide in stock prices than they started to resume their uptrend. Since Christmas Eve, the S&P 500 has gained 15.2%, the DFA US Large Value Fund 15.5%, and the DFA US Small Value Fund 18.6%.
Prices don’t always rebound so quickly, but eventually, they always have, which is why “staying the course” is the best course of action assuming your portfolio is still appropriate for your long-term goals. Hanging in there, and even rebalancing, can save you a considerable amount of wealth you would otherwise miss if you bailed out and waited for the dust to settle (typically stock prices are much higher by then).
By the way, Fatal Attraction is still a great movie, check out the trailer below…
Past performance is not a guarantee of future results. Index and mutual fund performance includes reinvestment of dividends and other earnings but does not reflect the deduction of investment advisory fees or additional expenses except where noted. This content is informational and should not be considered an offer, solicitation, recommendation, or endorsement of any particular security, product, or service.