This week's Bloomberg Business Week has a short, but good, article on how to stay cool when the market is volatile. In the print edition, it starts at page 25 with a cute photo of a baby polar bear, entitled "I'm Here to Talk About the Market".
For old hands, the gist of the piece is nothing new. Basically, establish an appropriate asset allocation, given your age, re-balance as required, and don't panic.
What I took from the article was its observation of the wisdom of the "bucket strategy", something I have been advocating here for retirees for quite some time. While a fine point, the bucket strategy differs from pure age-based asset allocation in a major respect, as the article "sort of" notes.
The buckets strategy for retirees sets apart a certain amount for "tranches" of retirement (2/5/10 years, for example), which are not dependent on stock or bond performance. My main quibble with the article in Bloomberg is that it does not discuss retirement CDs (IRA or otherwise) as a separate bucket.
Oh, well. At least they are talking about the bucket strategy, if not fully comprehending how it works.
Best regards,
Bozo