And Now, a Message from the Buy-and-Hold Shepherd to the Flock

Here you go, sheep of the faithful flock…your daily affirmation from the Shepherd of Buy-and-Hold, Fidelity Investments (via Yahoo Finance):

Investors are understandably anxious about continuing to grow and protect their retirement savings despite the current market volatility. Fidelity says its calls from concerned customers have spiked 50 percent above normal levels in the past two weeks. The company’s typical response is to advise investors to stay the course. “During extreme market swings, it’s essential for investors not to overreact and remember that investing for retirement requires a long-term view, regardless of their investment horizons,” says James MacDonald, president of workplace investing at Fidelity Investments.

What’s truly wonderful about that advice (for the giver) is how totally biased it is.  Fidelity only gets paid when you’re in, there are no trailing or built-in fees to be earned on the portion of your assets that are in cash.

Another aspect of this “advice” is that it requires zero thought and it clothes irresponsibility in the garb of patience and wisdom.

But here’s the hitch…a portfolio of index funds held for the last dozen years is now flat.  When factoring in inflation (purchasing power), it is down substantially.  Apparently, you can’t “be in it for the long-term” and still use your brain.

So the stay the course, Sheep, be my guest.

Tags: $QQQ $SPY $DIA