On 03/09/2009, the S&P 500 closed at 676. This was the very bottom of the worst bear market in recent history. A few hours ago, on 03/09/2011, the S&P 500 closed at 1320. Yes, it’s been a bumpy ride, and yes, the market is still below it’s all time high, but… We’ve just witnessed a 95% gain over the span of 24 months. Wow.
Rewind two years. What were you doing? We were actually on vacation, and I was blissfully unaware of what was happening in the market. Sure, I knew that it was way, way, WAY down, but I’ve never been one to pay attention to – much less react to – stock market gyrations. We have a plan, and we stick to it.
We periodically review our asset allocation, and we tweak it when it needs tweaking, but we don’t react to market performance other than to rebalance our investments. The simple truth is that we don’t know what the market will do tomorrow. Or the next day. Or the day after that. Nobody does. And so we’ve formulated a plan that will (hopefully) help us reach our goals while letting us sleep at night.
Through good times and bad, we’ve stuck to our plan, and it has served us well. What about you? Did you make any major changes in the face of the growling bear? Or did you stick to your plan? Whatever you did, how has it worked out for you?