Motley Fool – First things first: I’m a dyed-in-the-wool Fool and, not coincidentally, a buy-to-hold investor who absolutely believes that the best place for long-term money is the stock market. Noother investment vehicle — not real estate, not bonds, and certainly not precious metals — offers nearly as much bang for your investment buck over the long haul. <\/p>\n
What’s more, while the market’s up and down cycles are pretty much inevitable — not to mention fun to watch for market geeks — at the end of the day, they don’t amount to a hill of proverbial beans.<\/p>\n
On the other hand, if you’re proactive and smart about it, you can make those cycles amount to something for your portfolio. After all, while the miracle of dividend reinvestment<\/a> and compounding can help grow your stock nest egg at an impressive clip, the effect will be all the more miraculous if you play defense effectively and do a good job of preserving your principal when the market heads south.<\/p>\n