Tuesday, August 30, 2011

The HOKEY POKEY is NOT an investment strategy

You put your money in,
You take your money out,
You put your money in,
And the market shakes you out.
If you do the hokey pokey,
In the long-run you’ll lose out,
That’s what this blog's about!

Wall Street is a bipolar market that veers from despair to euphoria with each passing news headline.  Don't give in to temptation to "get out" of the market with the notion that you will "get back in" once things “settle down."  Ignore every "expert" (yet, invariably underperforming) stock fund manager on CNBC that claims this is a "traders market."  Man up and rebalance your portfolio - which means sell some bond index funds that have risen in value and add to your stock index funds that have fallen in value. Don't become one of the following statistics.

For the 17th time in as many years, Boston-based research firm DALBAR found that the 20-year returns realized by mutual fund investors lagged the markets thanks to ill-timed buys and sells driven by psychology. 

"At no point in time have average investors remained invested for a sufficiently long enough period to derive the benefits of a long-term investment strategy,"

DALBAR wrote in its 2011 investor behavior analysis.  DALBAR went on to say, 

“Investors who hold on to their investments are more successful than those that time the market.”

Don’t be foolish and think you, or anyone else, can successfully “time the market.”


  1. I like the Hokey Pokey song. It's perfect!

  2. Funny poem - I know he is right, but it is hard not to pull that money out and try it. You have to be right twice when you do that - tough to do.