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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By | 2014-09-03T17:31:15+00:00 March 20th, 2008|Uncategorized|0 Comments

About the Author:

Mr. Tengdin is the Chief Investment Officer at Charter Trust Company and author of “The Global Market Update”. The audio version of each post can be heard on radio stations throughout New England every weekday. Mr. Tengdin graduated from Dartmouth College, Magna Cum Laude. He received his Master of Arts from Trinity Divinity School, Magna Cum Laude and received his Chartered Financial Analyst (CFA) designation in 1992. Mr. Tengdin has been managing investment portfolios for over 30 years, working for Bank of Boston, State Street Global Advisors, Citibank – Tunisia, and Banknorth Group. Throughout his career, Mr. Tengdin has emphasized helping clients manage their financial risks in difficult environments where they can profit from investing in diverse assets in diverse settings. - Leave a comment if you have any questions—I read them all! - And Follow me on Twitter @GlobalMarketUpd

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