Matson on the Markets: The Way to Deal with Volatility Is to Not Predict It, ‘What You Do Is Diversify Your Portfolio’

RUSH EXCERPT:
MATSON: "The way to deal with volatility is to not to try to predict it. The future to anyone’s common sense we know is unpredictable. What you do is diversify your portfolio you don’t just have all large U.S. stocks which most people make that mistake you diversify internationally into Europe, Asia and emerging markets with your equity part of your portfolio and then you have to own high-quality short-term fixed income. If it does crash and markets on the beginning part of the year were down in the ballpark around 10%. If it crashes and goes down like it did in 2000 when it went down 30% for 2008 and nine when it went down 50% you have to sell your fixed income forced herself to buy the equities mother down, restore your portfolio back to balance, that is easier said than done but a Putin investor will always do the opposite of what everybody else is doing."