Prepared
4
min. read
"Everybody has a plan until they get punched in the mouth." – Mike Tyson
Mike Tyson's point isn't that plans are worthless. It's that a plan alone isn't enough. The market is throwing a punch, like it tends to do. As of this writing, the market down roughly 5% from all time highs despite the recent catastrophic headlines.
War with Iran and a turbulent geopolitical backdrop have combined to produce the kind of volatility that tests even the most disciplined investors. We're right here with you, calm, disciplined, and ready.
This is not a surprise. It's exactly what markets do.
Anyone can have a plan.
Preparation is something else entirely.
Planning says: here's what we'll do when markets drop.
Preparation says: we've already done it.
We stress test your portfolio before the headlines hit. Your cash reserves are positioned before the volatility arrives. Your time horizon is established when we meet and you are thinking clearly, not in the middle of a panic.
That's preparation.
You never repair the roof in the middle of the hurricane.
We repair your portfolio when the sun is shining.
This matters more than most people realize. When fear takes over, good intentions collapse. If you prepare, you don't make decisions in moments like this one, because the decisions were already made.
We don't build your financial life for the good times.
We build it for the bumps along the way.
A few facts to know:
The current sell-off has a specific catalyst, but the pattern is identical to every correction before it.
Panic, news cycles, predictions of doom, and then recovery.
When markets fall, you have three options: put excess cash to work, sell in a panic, or do nothing. The math on option two is brutal and permanent. The math on options one and three is patient and rewarding.
Abby Joseph Cohen of Goldman Sachs said it best:
"If you want to take the volatility out of your portfolio… don't look at it."
Turn off CNBC. Stop refreshing your account balance. The market doesn't care how many times you check.
Bad things always happen. Wars, corruption, disease. None of that is new. What's new is the megaphone.
Our ancestors lived through genuine catastrophe without push notifications. They didn't scroll through a feed of suffering every morning before their feet hit the floor.
You don't even need to read the story anymore. A headline is enough to ruin your mood regardless of it's integrity.
Your financial life is in far better shape than the news suggests. Markets reward patient, disciplined investors consistently over time.
That story is boring. But it's true.
If you're concerned and feel the need to act, give us a call.
That's why we are here.
Next, write down today's date, today's market level, and what you're feeling. Seal it. Open it in six months. We've been doing this long enough to tell you exactly what you'll be thinking when you read the note: "I can't believe I was that worried."
Like all previous panics, this too shall pass.
You're prepared.
Stay the course.
