For decades, the investment community has tried to convince investors into remaining fully committed with their investments regardless of the price and the state of the economy. While this is a reasonable argument, it assumes that all of us have unlimited time and risk tolerance to withstand volatility of price that is inherent for all investments (stocks, bonds, commodities, real estate and so forth).

The last ten years has been described by many investors as the “lost decade” since several major collapses have occurred, including:

• NASDAQ goes above 5000 in March 2000

• Real estate prices increase significantly from 2003-2008

• The price per barrel of oil reaches $140 in 2008

• Gold is at all-time high levels

• Bear Stearns, Lehman Brothers, Bernie Madoff and other financial institutions collapse

Price does matter.

Our investment team embraces the belief that no one can predict the exact timing of when those few big days each year will occur. Trying to catch the “10 biggest gains” or avoiding the “10 largest declines” is almost certainly a fool’s game. Hardly anyone makes these decisions successfully, not even hedge fund managers with the most sophisticated computer programs, the brightest minds from prestigious universities or access to a professional network of experts. Rather, a proven long-term investment strategy employs an approach void of emotions and following the crowd mentality.

Price matters.

Although there is little point in attempting to catch every twist and turn of your investments, that doesn’t mean investors should be passive and let “Mr. Market” walk all over you. Sophisticated and disciplined investment advisers may derive intelligent conclusions as to whether or not there are better price opportunities.

Price does matter.

For example, the current price of equity investments is definitely not cheaper than the March 2009 closing low of 676. Even my eleven year old son, who is an arithmetically proficient sixth grade student, can confirm that at 1276 the S&P 500 is more expensive by approximately 89 percent.

Price matters.

It most certainly makes a difference to whether investors should invest, when to invest and what to invest in. If history is our guide, we can all agree that price does matter.