Classic investment advice from the 1980's & 1990's goes something like this: Buy & Hold; Be a Long Term Investor; Ride it out; Diversify.These are all great axioms for investment guidance during the greatest Bull Market since the Roaring 1920's. Heeding this advice was generally productive in both the 1920's and the 1980's &'90's. The problem is ... This isn’t the '20's, 80's, or 90's.
Twice in the last 15 years we have seen the S&P 500 decrease by more than 55%. The NASDAQ lost over 80% from March 2000- Oct 2002. Historically, this is actually rather normal for investment markets and will likely repeat in your remaining investing years. The traditional buy & hold approach could cost money. More importantly, it could cost you time and force you to postpone your retirement years. The problem with the traditional investment approach is that it fails to protect against losses in your account due to market down turns.