2018 Was A Stock Market Crash Test: Don’t Be A Dummy

By Rob Isbitts via Iris.xyz

The recent stock market bounce is a reprieve.

Use it to re-evaluate long-term strategy.

Where were you from December 3 through December 24, 2018? Hopefully enjoying the holidays. Me? I was navigating the closest thing we’ve had to a true stock market crash since 2009. Oh, and I am not complaining. It’s environments like that where we hedged investors get to show why we believe that simply dumping your money in stock index funds is a foolish strategy for most investors.

After all, as the above chart shows, the losses during that 3-week period were quite heavy. And it did not matter if you diversified between large, mid, small-cap companies, growth or value. All of the so-called “U.S. equity style boxes” made popular by Morningstar all fell by between 15-19%. Did I mention this happened in only 3 weeks?

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