Imagine that you were given two tickets on the 50 yard line at the biggest game of the year for the New England Patriots. After finding your seat you position yourself comfortably facing the scoreboard and fix your gaze on it for the next 3 hours, rather than watching the game unfold in front of you. Silly! Right?
People who only watch the measure of the S & P 500 Index or the Dow Jones Average of 30 Industrial Stocks bear a strong resemblance to our imaginary scoreboard watcher. The score records the success and failure of the players, but it is not the game. It is what happens on the field that determines the score, not the other way around.
Another way to see this is to envision your local supermarket. There are thousands of items in the building but you will never buy all of them. Most people go with a list of what they need or at least a good idea of what to buy. You get what is right for your pantry and leave. The gross sales numbers of the market or their profitability has little to do with your particular participation in that enterprise.
Investing involves acquiring components in your portfolio that will meet your needs. As your needs change, so should your portfolio. Whether or not they match the markets is irrelevant. Whether or not they meet your needs is critical.