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Markets getting you down?

It's hard to take emotions out of one's investment decisions with a market as volatile as that which we are experiencing today. My advice is to take a deep breath, stretch a bit, spend time with friends, get outdoors and reflect on what you find truly important.


Too often, our tendency is toward a 'fight or flight' posture: the market has dropped so much that it can only go up from here so I'll buy now.... or I can't stand the heat, cash me out so I don't lose any more. These are terrible "strategies" because they are informed by reacting instead of planning, trading instead of investing.


Corrections (a drop of 10% from recent highs) and bear markets (a drop of 20% from recent highs) are not infrequent events -- they just feel like it because the market's ascent up until recently has been with relatively low volatility. It's a good time to revisit such things as one's risk tolerance, near-term cash/income needs, current and future lifestyle goals, tax sensitivity and the health of oneself and family; just as it is when planning to send a child to college, your retirement, long-term care needs in the future, significant purchases and looking after an elderly family member.


Look to past turbulent markets and the long-term to avoid making rash decisions. Although we may be in a bear market today, the S&P 500 is still about 50% higher than the lows of 2020 and more than 200% in the past decade.

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