The Strong Hand

Winnowing. That’s what the market is doing now. It’s winnowing out the weak players, and rewarding those who are disciplined enough — or bored enough — to avoid panicking just as the market bottoms.

It’s a paradoxical fact, but it’s true: people who fidget and adjust their investment portfolios tend to do worse than the buy-and-hold investor. Studies have shown that just looking at a portfolio too often causes investors to adjust it and underperform the underlying index.

The dictionary defines winnowing as separating the stronger elements from the weaker. In this period of high market volatility, the best thing a lot of investors can do is go take a nap.


Douglas R. Tengdin, CFA
Chief Investment Officer
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