From The Guru Investor:

Top value fund manager Bill Nygren says that investors should stop paying attention to every zig and zag the stock market makes, and instead take advantage of a "once-in-a-generation opportunity" in equities.

"We believe investors currently have a once-in-a-generation opportunity to use asset allocation to add to their investment returns," Nygren tells Morningstar. "Stocks appear to be significantly undervalued relative to bonds." But, he adds, many investors continue to shun stocks and buy bonds, mistakenly believing that bonds will return as much in the coming decade as they have in the past decade – something he says is a mathematical impossibility given the current low bond yields.

Nygren also says investors should stop hyperfocusing on every move the market makes. "The financial media have business reasons to make investors believe they need to follow every zig and zag of the market and of their portfolio," he says. "But one doesn't need to, and for some investors...

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