Well, I have to admit I’ve found myself second guessing my strategy of buy and hold. Of course I’m not making any rash decisions and certainly won’t be selling as the market goes down, but I have thought about a couple things.
1) Maybe I should have moved a percentage of my portfolio to cash as part of an ongoing diversification strategy
2) I definitely need to keep more than 5% of my net worth in cash so that I can take advantage of the market dips
So, I’ll ride the roller coaster. The good news is that, like Flexo over at Consumerism Commentary, I’m dollar cost averaging all the way down. I’m happy to be buying a nice chunk of indexed funds every two weeks in this market. Since these investments are for the LONG term, I’ll just sit back and let the investing happen.