How do you handle rough performance?

[hendi_alex]

Before buying long term positions at high valuations during a long in the tooth expansion, one should make sure to be comfortable enough to hold and continue building through the other side of the cycle when valuations are likely to be more favorable. At the very least, the price drop allows one to continue accumulating at more favorable prices. Aside from energy and REITs, I think that the current market is seriously over valued. Outside of energy and REITs, there are virtually no DG types of stocks that are anywhere near my buy range. EMR is fairly close though. My move into typical DG big cap stocks will not come before we have at least a 20% correction, and buying will just be modest at that level.