What to do in the turmoil…

I read some good advice in BusinessWeek today. It’s a quote from Richard Thaler, a professor at the University of Chicago Graduate School of Business: “My advice has always been to choose a sensible diversified portfolio and stop reading the financial pages. I recommend the sports section.”

Many people are trying to time the market bottom and invest accordingly, but in the end, for the long-term investor, there is little to be gained from that. A well-diversified portfolio will ride out the current roller-coaster, and in the meantime, chasing the market will just cause undue stress. So, I guess I should take this advice and go focus on my research for awhile!

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