Reacting to "Headlines" - Three Case Studies

Reacting to "Headlines" - Three Case Studies


Three cases for how reactions to “headlines” affected clients during the downturn of 2008-09:

• The first moved his money to a money market account and stopped contributing. After two years, he ended up breaking even.

• The second stayed in the market and reduced contributions by about three-fourths. He gained 20% after two years.

• The third stayed in the market, and continued contributing the way he had. His investments went up 50% after two years.