It’s All About Perspective
While panic has taken the markets by storm, disciplined investors have been handed an opportunity on a silver platter. Those who are aware enough to take advantage will be rewarded. Those who are a victim of panic and irrational decision making will regret. You may know exactly where I’m going with this, or you may be saying “what the hell is he talking about?” Let’s talk about it.
We’ve talked about the volatile market a lot over the last few months, including in EP. 18 of Honest Wage. The DJIA is down 20% since January 1st, and anyone who says they can predict the bottom is a liar. We certainly don’t know when things will turn around, which is playing a large part in the panic felt throughout investors. At some point however, we know the market will rebound. Those investing with discipline through the hard times we’re facing right now, will be the people rewarded the most. Let’s back this statement up with some evidence.
Let’s look at a graph of the Dow since January 1st.
Pretty gross looking if you ask me. But if you login to look at your retirement/investment accounts, this is likely the first view you’re going to see. Your portfolio likely looks similar to this chart. Now we understand why people are panicking. However, there’s something so important missing here. THE PERSPECTIVE!
This picture right here is a great example of why having an advisor on your side to ground you during times like these is so important. Why? Because a majority of people who are logging in to check on their investment accounts are now freaking out asking themselves “what the hell do I do now!?” And I totally understand why! We’re talking about large portions of somebody’s net worth, their ability to retire, plus years and years of putting money away. So when the first thing they see is a graph that looks similar to this, it is understandable. But let me show you a simple trick.
Notice what happens when we zoom the graph out? We suddenly realize that we’ve seen this many times before. The situation we’re in right now really isn’t that unique. The market fluctuates, it has for 100+ years, it’s all about perspective. An opportunity is presenting itself right before our eyes. Instead of panicking, zoom the graph out and understand that we are simply getting a chance to invest in valuable securities at a discounted price. Don’t miss out on a golden opportunity. Let’s chat.
Tanner Millar
Investment Advisor - Core Planning
tanner@yourcoreplan.com
(660)-998-4639