Here is a preview of the monthly moving averages I track after the close of the last business day of the month. All three S&P 500 strategies are now signaling "invested" -- unchanged from last month.

Clearly, avoiding major drawdowns in the market is key to long-term investment success.

Upon his passing, Warren Buffett would like a trustee to place 10% of his wife’s money in short-term government bonds and 90% in a low-cost S&P 500 index fund

Since the mid-90's there has been an ongoing debate waged between "passive indexing" and "active management" of portfolios. The primary point of contention is "why pay a manager a fee to actively manage a portfolio when [x%] of managers fail to beat an index fund over [x period]."

Here is a preview of the monthly moving averages I track after the close of the last business day of the month. All three S&P 500 strategies are now signaling "invested" -- unchanged from last month.

It does not hurt to be reminded once in a while about what it means to be a “true investor,” and who better to remind us than Warren Buffett?