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I have been saying this for years, and I am sticking to my guns on this; the average investor has no business in the stock market. There are exceptions. Investors following this blog are obviously more informed, and in tune, to what is going on. Yesterday, my wife was at the park behind our house, and she ran into a lady in our neighborhood who said, "Isn’t the stock market awful?" If this person thinks a 500 point drop in the Dow is awful after a 2000 point rally since July, she and her husband do not have a clue of what they are doing. The dumb investor believes the stock market should always go up. This is like playing a slot machine that is rigged, and believing that every time you put in a coin, you should win. They don't understand that a slot machine, like the markets, is pre-determined to win or lose based on what the house wants it to do. In a rip roaring stock market, investors do not pay attention to asset allocation; they just stick everything on "red" and spin the wheel. When the house believes it is time to sell, the dumb investor takes a 25-50% hit in their investment portfolio. After many years in this business, I can tell you that the 2000 market crash did not change most investors for the better. They were "sheep" in 2000, they were "sheep" during the real estate boom, and they continue to be "sheep" today. I am convinced they have no business being in the stock market. "Ever wonder why fund managers can't beat the S&P 500? 'Cause they're sheep, and sheep get slaughtered"- Gordon Gekko, "Wall Street- 1987

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