What did we learn in 2008?

I often look back on the market crash in 2008 and feel proud of my clients for sticking to their investment plans. I've never written an investment plan or seen one written by someone else that included an emergency 'sell all' provision in bad times, and I don't expect that I ever will. That's because there's no reason to fear bad markets if we've thoughtfully designed an investment plan and chosen an allocation based on the assumption that there will be more bad times in the future.

To help remind you of the data behind bad markets and why you can look at them in a positive light, here's a new piece from Dimensional looking at post-crash market returns.