Home RetireMentors Investing When markets tumble, be like Bogle — 'Don't peek'

Here is the article for me to read. I like to read it like my Bible.

Risk-adjusted investing is an important concept, one that many people misunderstand. If you are going to be in the market for many years — and that's what retirement investors do — the goal isn't to grab a market-beating year. Rather, you should do nothing at all.

Common sense

To quote John Bogle, founder of the Vanguard Group and a longtime proponent of passive investing: "One of my favorite rules is 'Don't peek.' Don't let all the noise drown out your common sense and your wisdom. Just try not to pay that much attention, because it will have no effect whatsoever, categorically, on your lifetime investment returns."

The reason why you don't peek is risk. If you target a specific return, say, 8% annually, the next question you must ask yourself is, "How much risk can I withstand to reach for 9%?"