Year 2007 is in history. It\'s a tough year to make money. Three big sell-offs in the same year is a rare occurrence. Small/mid cap stocks and value stocks did poorly after the March sell-off. But I did OK. My overall return exceeded my year-beginning target of SP500 return + 5% (final return should be between 13% and 14%). The sell-off in Nov. hit me really hard. Had I cashed out on Oct.30, my return would have been 23%. However, in the stock market, we can’t talk about “if’s”. No one can time the market perfectly.

My portfolio is 60% in stocks and 40% in mutual funds. All my stock accounts and mutual funds accounts are broadly diversified. So it’s harder to outperform the market. But I’m not ready to change my investment philosophy yet. To stay in the game for the long run, it seems to me that diversification is the only way to reduce risks. I hope those who have made much better returns (with stocks only) can speak out more loudly and more frequently so that everyone can benefit.

Wish everyone a prosperous 2008!