The Danger Of Short Term-ism I met with a client last week to effectively talk him "off the ledge." Lets name this client Bob. Bob is a successful business owner who has paid their dues and is looking forward to retirement in less than a handful of years. We created and adjusted a comprehensive financial plan for Bob to reflect the recent conversion of his variable annuities into his SEP IRA. Every contribution he made over the past few years seems to be met with a portfolio downdraft or market turbulence. Bob is either fearful or frustrated about his financial future - even though every scenario in our stress tests show that Bob is on track to ride off into the sunset. What can we do to make Bob feel better about his future? Mean Reversion Is Real One powerful phenomenon in financial history is called mean reversion. This term refers to the knack for things to migrate back toward their long term average behaviour. In nature we see this quite often with the ebb and flood of t