Nervous about the market because you follow it everyday? Don't panic.

What if we removed daily prices from the S&P 500 chart? Replaced them with 10-day (pink), 50-day (blue) and 200-day (green) moving averages to smooth the price data.  And, added Bollinger Bands based on a 50-day moving average set at 1-standard deviation. Statistically speaking, 1-standard deviation explains 68% of price movements assuming a normal distribution.  Well, the market may not be exactly normal, but recent daily price changes fall within1-standard deviation so the ups and downs we are seeing may be quite normal.  So, there is no need to panic. Next, I will show you why using an asset allocation strategy is the best investment approach.