Posted on Leave a comment

In the Time of Turbulence

The markets have been volatile ever since the Coronavirus outbreak. Everyone has made money one day to see it evaporate the next. And my oh my remembering our portfolio values at the market high, set only a month ago, to now, brings an extraordinary amount of pain. So, you ask, what’s the good news? Well, the only good news for your portfolio is that it’s condition of low value isn’t terminal. The market, over any 20 year period, has never been down. Given this axiom of the market, if you’re invested for the long run, don’t change your portfolio.

There is only one way of coping with these extraordinary events: stop internalizing. The market does not care what you think about it. It delivers it’s sentence of profitability with indifference. A profitable investment does not equate to brilliance likewise a loss is not stupidity. These losses (or gains) are strictly business not emotional decisions. While I’m sure it’s riveting to see your portfolio jump, it should only given be a nominal amount of emotional value. The same is true of the obverse, if the market goes down re-examine what lead to the position and if that same logic applies keep the position.

The bottom line is that markets will continue to free fall. If your logic still applies then do not change your position. Additionally, do not kick yourself for missing the huge drop in the market. Just remember the market will rebound and when it does you want to make sure you’re still in the market.

Leave a Reply

Your email address will not be published.