Originally Posted by akshatp
Unless you are close to retirement age, what the heck is the difference whether its +20% or -20%
Just keep investing in solid funds and forget about it.
Let's say I'm 40 and I plan on retiring at 60. The difference between earning +20% and -20% is FIFTY PERCENT (1.2/.8 = 1.5) of the value of my portfolio. The difference is 50% when I'm 40, and it's also 50% when I'm 60, assuming all else is the same.
Yeah...I care about that difference.