Recently, Tim Buckley, chairman and CEO of vanguard, published a signed article reviewing the “most sudden and sharp market decline in history” in March this year, as well as the gains and losses of investors in different choices between “insisting” and “selling”. He continued to call on investors to hold a balanced and diversified portfolio. < p > < p > in the first half of 2020, the financial market experienced significant fluctuations. We witnessed the most sudden and sharp market decline in history, and the perseverance of most investors was greatly tested. Although the S & P 500 index fell by nearly 34% in just over a month, vanguard’s investors are still unswerving and unswervingly carrying out their investment plans. Some investors even rebalanced and bought more stocks during the stock market downturn. In the long run, abiding by investment discipline may eventually bring about ideal returns. < / P > < p > for a long time, we have been advocating that investors should not control their investment strategies by short-term market fluctuations (whether they are up or down). Through user data, we are pleased to see that vanguard investors have accepted this view, and the vast majority of investors have chosen to continue to invest in the recent fluctuations; on the contrary, less than 0.5% of investors gave up their original portfolio and turned to cash. One of the key points of long-term investment is to be able to withstand sudden market declines. Although it is human instinct to hope to keep the principal when the market falls sharply, investors will not rebuild their positions immediately after selling, and it is easy to miss the subsequent rebound. < / P > < p > we reminded investors in March this year to stick to it. The purpose of holding a balanced and diversified portfolio is to ride through the tough times in the market. Most vanguard investors (83%) remained resilient from late February to May and did not trade at all. What’s more, 9% of our customers still insist on rebalancing in the market shock, buying more stocks to return to the target asset allocation. Rebalancing helps reduce risk, which is what we have been sharing with investors. Among them, vanguard retirement account investors show the lowest trading tendency. The trading level of IRA holders and DC participants is much lower than that of other types of investors. They are truly long-term investors who are not easily disturbed by short-term fluctuations. < / P > < p > why is persistence so important? Take an extreme example: some U.S. investors lost confidence in the market and chose to cash out and turn to money market funds when the market bottomed out on March 23. However, the stock market rebounded by more than 39% in the next three months, but these investors could only regret to miss, and the final yield was only 0.14%. Our analysis shows that about 85% of these investors would have been able to get higher returns if they had stuck to their portfolios. < / P > < p > just as investors should remain calm during the downturn, they should also be calm and calm in the carnival of sudden market rise; on the contrary, if they miss a wave of market, they need not worry too much. Market volatility brings about a surge in the daily trading of individual investors. The line surged at the beginning of the year, among which many investors hope to make a profit by taking advantage of “hot” stocks or speculation. Fortunately, the vast majority of vanguard investors are disciplined and stop speculation. We know that herding has taught millions of investors a valuable lesson about the importance of diversified investment.