The unrelenting decline in equities has placed these quarterly updates in the elite company of my credit card bill or any kind of inquiry from the Internal Revenue Service. In reality, most investors, including me, will open those statements and wince when we look at the dwindling balances. If the overall portfolio is well diversified and retirement is still measured by a decade or more, the bottom of the drawer strategy might be entirely reasonable. There's really little reason to look or even worry. Owning a broad spectrum of domestic or even international companies is a sound approach to funding your retirement.
Economies expand and contract and financial markets undergo periodic euphorias and panics.
But in the long-term, stock prices rise. A problem arises because many retirement accounts are not well diversified. Open up the statements for many investors and you'll find big chunks of company stock, or concentrations in particular industries. For example, it is not uncommon for someone working in the technology sector to have big interests in the company's stock and positions in a variety of technology-oriented mutual funds. Similarly, someone in banking or insurance is likely to focus her investments in the financial services arena, and a pharmaceutical employee will dabble in biotechnology.