It's All About Asset Allocation

A lot of time, energy, media and money is devoted to the investment decisions - security selection and market timing - that have the least impact on your investment experience over time.

Over 90 percent of investment returns are determined by how investors allocate their assets versus security selection, market timing and other factors.

- Brinson, Singer and Beebower, "Determinants  of Portfolio Performance II:  An Update," Financial Analysts Journal, May-June 1991

Sure, a long-term asset allocation strategy is boring and can be particularly frustrating to adhere to during a challenging market environment like we currently find ourselves in.  But wouldn't you gladly be willing to accept a little less excitement and exercise a little more patience if the approach works? Asset allocation combined with broad diversification and low-cost, passive investment strategies work, but you have to have the patience to let them do their job.