I read an interesting comment Coach Frank Martin made to his U.S.C basketball team after losing a couple games towards the end of the regular season. He told them, “adversity is part of the deal”. Indeed, that is so in every aspect of life. If the stock market goes down a few days in a row, that’s part of the deal. It should be expected, anticipated, and embraced. Coach Martin’s team used adversity as fuel for the most exciting postseason run in the history of Gamecock basketball. The very same lessons can be translated into your approach towards investing.
If you pay any attention to the financial media noise on a day-to-day basis, you are left with the impression that markets should only go in one direction and that it is “news” when they don’t.
Of course, that is objectively untrue and even the expectation of markets only moving higher can easily become a problem. Investors worry about the markets; they worry about their futures and the markets.
What if there was an antidote to this needless worry about the markets? In medicine, an antidote is administered to stop the harmful effects of a poison.
Within the context of financial planning and investing, worry can lead you to react to something you heard or read in the media. Assuming that your purpose for investing is something years into the future, why should you care if the market goes down today? Plainly put, the financial media is in the business of filling space/time and sensationalizing even mundane market events. Their best interest may not be your best interest. The media can easily poison your plans and your perspective.
The antidote to worry is doing, taking action.
That is, taking very specific action stepsneeded for your future. These actions will very likely entail accepting some level of risk in order to achieve long-term above inflation returns. One of the necessary action steps is to stay invested across all types of markets. Yes, this means staying invested when “adversity” strikes and the market declines. Remember Coach Martin’s message,” adversity is part of the deal”. If you expect it, you won’t react to it. That’s the antidote.
Flying Cars Are on Their Way
10 Tips to Being a Happily Self-Employed Person
5 Techniques to Increase Your Work Productivity
Making Sure Your Clients’ Keep Their Medical Directives up to Date
Social Isn’t Another Chocolate With a Different Wrapper
A Passport To International Value
The Emotional Biases That Cause Investors to Stumble
Recent Corporate Bond Market Weakness
Top Funds’ Activity in Q3 2018
Why Should I Do Business With You?
Equities9 hours ago
Top Funds’ Activity in Q3 2018
Insights10 hours ago
You’re (Possibly) Richer Than You Think
Public Relations10 hours ago
Be Sweet to the Algorithm: Producing Content that Makes Google Happy
Learn1 day ago
A Surprising Post-Election Investment Idea
Development1 day ago
The Extraordinary Power of the First 90 Days
Digital Strategy1 day ago
FINRA and Compliance In The Era of Fake News
Building Smarter Portfolios2 days ago
Beware the “Known-Unknowns”
Learn2 days ago
Cybersecurity Without The Commitment