What is the overarching lesson you think investors should take from the past years turmoil?
It’s that there are certain timeless principles. For one, diversification does work. Diversification didn’t immunize investors from the market declines, but it certainly insulated them from the worst of it. Second, it’s important to live, or invest, within your means. Many people have different opinions on the root cause of the crisis, but leverage—overindebtedness—certainly played a huge role. My hope is that investors take to heart that too much leverage, whether in investing or personal debt, is not a good thing. Third, saving money is critical. We’re seeing this manifest as investors pay off debt, which is a form of saving, and at the same time increase their personal savings. How have you reassured investors during this period? The toughest discussions I’ve had are with those investors near retirement. They may have done all the right things—saved for 25 years, held a balanced, diversified portfolio—but their portfolios still declined. There is no easy answer, no silver bullet. Wh
