One of the "Pros" of passive investment is that you are in it for the long haul and not reactive to immediate swings in the market. In your scenario I believe t

One of the "Pros" of passive investment is that you are in it for the long haul and not reactive to immediate swings in the market. In your scenario I believe the investor is supposed to treat a downswing like you would a 401k account. Cry inside at the losses and wait for recovery since your target date is likely 20-30 yrs down the road.