Investors pulled $2.8 billion from US stock funds in January, according to Morningstar. Investors were likely reacting to the poor results turned in by equities in 2011.
But the spurned market responded by turning in its best result for the month of January in 15 years. The Dow Jones Industrial Average rose 3.4% and the Standard & Poor's 400 gained 4.4% in January.
The lesson? Investors need to learn to remain steadfast. Successful investing does not require timing in and out of the market. Rather, successful investors develop an appropriate investment approach and remain committed to it.
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