Most of the time just standing still with your portfolio allocation will allow the market forces to wash over you one way while values go down, and then wash over you another way while values go up. With skill and confidence, you may ride through the economic wave.
This approach generally requires a very broadly globally diversified portfolio with an allocation customized very close to what you say your risk capacity and risk tolerance may be. We review this point every couple of years, and stay globally diversified all the time.
In this feature by the New York Times, Dimensional vice president Mark Gochnour makes a strong case that it would have paid to remain invested in a well-diversified portfolio over the past decade—and he uses his own retired parents as an example.
Note: Dimensional is the Sub-adviser for SA Funds (please see disclosures for more information).