Here we are into the 20th year of this century and are experiencing the third “once in a century" event.
A well-constructed portfolio and a long term horizon are the only way to deal with these events. If you have the right amount in cash reserves and the proper portfolio construction, the right approach is to practice a fair amount of benign neglect. When you think about markets you have to leverage the advantages of both time and patience. Markets are not a game for pessimists, they are a place for long term optimists and history shows the optimists ultimately win.