Embrace Optimism. Or Get Left Behind.
Your Money & Your Emotions
Earlier this year, stocks in the US were expensive. But the economy was doing well and even an overpriced stock market left many thinking “any potential downturn in the stock markets should be modest.”
So we remained optimistic, even excited about the future.
Then COVID-19 found it’s way to the US and the world. Skipping euphoria, we went straight to anxiety.
It won’t affect us. Our denial stage?
Costco anyone? More than concerned, we were fearful.
Uh oh, we’re in over our head. A whiff of desperation.
“Shut the place down” (and sell your stocks?) – Panic, capitulation, despondence and depression – all compressed into March.
But even as we entered April and the news was bad, there was some hope.
The food supply appeared stable, “mayhem” was (mostly) non-existent and we felt some relief that this likely wouldn’t last forever.
Now science appears to be making ground and there are many reasons to think optimistically.
With the image as our guide, optimism is physically shown as the halfway point in the emotional market cycle. We’re probably not 1/2 through the next market cycle as they usually last 7-10 years but, ideally, you are prepared for optimistism before everyone else is optimistic.
Don’t be the last one to reach optimism. Or it will cost you dearly in retirement.
Image credit: Raymond James Research.
Please Note: Speak to your tax, legal or financial advisor for specific advice about your particular plans and situation.
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