"The loser now will be later to win, for the times they are a changin'."
NEW YORK ( TheStreet) --At around 1,300, the S&P 500 was recently trading around 8% below the highs it made last spring, although it's still up by more than 3% for 2012. How does the performance of your stock portfolio compare?
Did your manager hold shares of J.P. Morgan Chase (JPM) when the recent news of its huge trading loss broke and its stock tanked? Did your manager fail to buy Apple (AAPL) before it enjoyed spectacular gains?Should you care? My answer is no, if you made good decisions about how to invest your money in the first place.
Don't believe me? Let's examine some facts:
As you can see, chasing performance as an investor is a failed strategy. That's why it's important for investors to make well-informed, intelligent decisions in the first place on how they invest their money, whether they're choosing a professional to do it for them or they're trying to do it themselves. If that initial decision is made poorly, then a change is probably wise. If, however, the initial decision was a good one, then it's absolutely crucial that investors refrain from being spooked by a slump.
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