Discipline and diversification vs. prediction and timing
Discipline and diversification vs. prediction and timing. Which strategy yields the best results?
We recommend reading this article by Weston Wellington at Dimensional Fund Advisors, Nine Experts, Four Surprises, and One Million Dollar Bet. In it, he takes us back to a meeting in January 2017 where several experienced investment professionals make a bleak prediction for market returns in 2017. It serves as a powerful reminder that predictions can be wildly off, and it is best to focus on a strategy we that we know works.
- Buy, sell and rebalance your portfolio according to your own carefully crafted plans.
- Focus on an efficient, evidence-based approach to capturing the market’s durable returns while managing its related risks.
- Ignore the market’s daily distractions, especially its fleeting dips and rallies; they’re far more likely to block the view toward your higher goals than to yield big wins through the chase.