Post #1761 by zeelotes on the Mechanical Investing board

Investment Strategies / Mechanical Investing

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Jim wrote: I say "worse than useless" because a lot of people go to a lot of trouble to get a smooth ride, and hurt themselves thereby. As the old saying goes, a lot more money has been lost trying to avoid bear market losses than has ever been lost in bear markets. After all, a smooth ride won't get you any higher standard of living the day you retire: only the portfolio balance matters. There is no point at all in seeking a low-volatility, low-drawdown, or low-stress portfolio **EXCEPT** the barest minimum of those features that will allow you with your real-world foibles to stick with the strategy which will ultimately in real life get you the highest CAGR with the highest confidence.

This chart illustrates well the typical individual investor who attempts what Jim describes.

https://www.zeelotes.org/Training/Individual_Inves...

All financial advisors strongly advocate for being invested 100% of the time. Hmmmm.... I wonder why?

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