I'm old enough to have seen this cycle play out more than once.
Stocks are rising. Times are good. Everybody is recommending stocks, from your broker to your janitor. Buy, buy, buy.
Stocks are falling. Times are not so good. Everybody is giving up on stocks. Sell, sell, sell.
Then the pattern repeats.
Buy and hold isn't dead. The fundamentals of the economy haven't changed. Over time, stocks will outperform other asset classes. Folks with a long time horizon still need to be in stocks to meet their investment goals. Diversification remains important. Asset allocation remains important.
People who think they have a good risk tolerance discover during bad times that their tolerance wasn't so high after all and change their tune.
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Steve
* Despite the high cost of living, it remains very popular.
* Why should I pay for my daughter's education when she already knows everything?
* There are no shortcuts to anywhere worth going.
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