Schaeffer's advice to small investors is to avoid being 100 percent invested in equities, particularly in blue chip index funds, where he believes the risks are underappreciated. He also suggests maintaining a cash reserve, and perhaps some exposure to gold, "as disaster insurance."
The Dow Jones industrials ended the week down 35.11, or 0.3 percent, finishing at 10,583.92, but was up 0.9 percent for the month. The Standard & Poor's 500 index gained 0.83, or 0.1 percent, to 1,144.94 for the week, and was up 1.2 percent for the month.
The Nasdaq dropped 8.11, or 0.4 percent, during the week, closing on Friday at 10,583.92, and ending the month down 1.8 percent.
The Russell 2000 index, which tracks smaller company stocks, closed the week 5.67, or 1.0 percent higher, at 585.56, eking out a monthly gain of 0.8 percent.
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