1. Have a Long-Term Time Horizon
    A.  The length of the holding period is inversely proportionate to average yearly volatility. The longer the time horizon, the less short-term volatility means to the investor.
  2. Don’t try to Time the Market.
    A.  Timing almost always decreases performance.
    B.  I’ve never seen a hospital wing dedicated to a market timer.
  3. Invest Regularly
    A.  Dollar Cost Average key to Successful Investing
  4. Diversify Properly
    A.  Have a realistic risk tolerance
    B.  “I want to manage your risk, not your return”.
    C.  Tell clients to initially underestimate their short-term risk tolerance. That beat panicking and selling out at the bottom.
    D.  As you do asset allocation, make sure the selections match the client’s risk tolerance.
  5. Set Realistic Expectations
    A.  Mr. and Mrs. Client, what is it you expect of me?
    B.  Since 1926, the S & P 500 HA averaged 11% per year compounded. A reasonable expectation is 12%-15% per year.
  6. When in Doubt, Do Nothing
    A.  There is more money lost in preparing for a correction than in the actual correction itself.
    B.  It’s okay to do nothing if the following criteria are met:
    I.    A long-term time horizon
    II.  A reasonable risk tolerance
    III. Proper asset allocation
    IV.  A properly diversified portfolio
  7. Shifting Styles is Often Warranted
    A. Like using cruise control.
    B. This is not market timing.