Best Advice

It's hard to exploit a trend

Gus Sauter. Managing director and chief investment officer, Vanguard

Therefore, index investing is a great way to gain exposure to the marketplace.If you think investments are going to do something within a certain time frame, double that time frame. It could be anything from growth stocks outperforming value stocks to the dollar strengthening. That kind of advice gives you a dose of humility: It acknowledges that trying to exploit a trend is very difficult, even if you're right about it, because your timing may be all off.

Know what risk you are taking

Dan Fuss. Manager, Loomis Sayles Bond fund

Know the specific risk that you're taking with a particular investment. If you really know your companies, really know them, you have a phenomenal advantage, particularly in markets where you get rapid movements up and down that aren't related to individual companies.