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Subject:  Re: 4% Rule -- Common Misconceptions Date:  9/2/2011  12:46 PM
Author:  drippinfool Number:  69499 of 88543

The beauty of buy/hold/rebalance is that if you stick to the plan, you automatically buy equities when they are beaten down far enough and vice-versa.

By the way, try this experiment with the S&P (or any other chart) block out the dates and cover the chart with a piece of construction paper. Then slide the paper gradually to the right to reveal the movement of the chart. Ask someone who thinks they know which way the market will go to predict the shape/slope/direction of the chart. See how they do.

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