While many clubs invest for the academic year, the young investors often have their own long-term portfolios.

Sector fund holdings, if any, should represent a very modest portion of an individual's long-term, balanced portfolio.

But for those who can tolerate risk, he suggests investing 5 percent to 10 percent of a long-term portfolio in such funds.

And it is a testament to the value of carefully constructed long-term portfolios and the ability to stick by them during tough times.

"I think they will still conclude that equities are an important part of their long-term portfolio," he said.

For those who invest in bond funds, that means going from long-term portfolios to intermediate- and short-term funds.

The best way to weather market breaks is to build a long-term diversified portfolio and sit tight.

After that time, an investor can repurchase the shares, if so desired, keeping his long-term portfolio intact.

"I understand that volatility is higher when you're in emerging markets; however, in a very long-term portfolio I'm very comfortable with that risk," he said.

The U.S. Geological Survey position was a patronage job, simply meant to look good in the long-term corporate portfolio.