The Market Is Inviting You to Make The Big Mistake. Consider Declining the Invitation.
Fortunately, I’ve not made any Big Mistakes so far… well, come to think of it… there have been a few. Mistakes are how we learn. And when we learn, we gain wisdom. That wisdom we can share and perhaps it helps us avoid making Big mistakes in the future.
In just six weeks from February 19, the S&P 500 dropped 16%, erasing $8 trillion in market wealth. This rapid correction flipped investor sentiment from euphoria to fear, driven partly by the newly installed president, particularly as they relate to tariffs.
However, the deeper issue is that the market, especially the “Magnificent Seven” stocks, were priced for perfection, leaving no room for error.
The challenge is that all of this comes with an invitation to make The Big Mistake: selling everything and going to cash. As long-term investors, we must resist. We’ve set your financial goals, created a plan to achieve them, invested in a diversified portfolio, and you were likely on track before this correction. The market’s historical returns support staying the course, because in the long run they will carry the plan to success.
While every crisis feels unique, none have derailed the long-term growth of innovation and productivity in the world’s leading companies. Investors who sold during past declines have come to regret it.
Fear is natural, but acting on it is a mistake. We are here to help you separate emotion from action. To help you remain rationally optimistic.
This might help. The wise words I’d often hear from my grandparents who grew up during the Great Depression: This too shall pass! Sometimes easier said that done, yet still true.
This time, like others, is unlikely to be fundamentally different in the long run. Stay the course. Decline the invitation!
Here’s a better invitation… change the channel… the Blue Jays are off to a great start!
And remember, the invitation to connect with us is always open!
The successful and the unsuccessful have this in common – they both hate to do what it takes to be successful.” —Darren Hardy
