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.
It was approximately 16 months ago that we first discussed the coronavirus in these missives. At that time history was telling us that while viruses have a habit of forming frequently, rarely do they have effects on a global scale. Covid-19 is an outlier. ...
“The American marketplace is an economic jungle. As in all jungles, you easily can be destroyed if you don’t know the rules of survival. … But you also can come through in fine shape and you can even flourish in the jungle—if you learn the rules, adapt them for your...
Retirement Planner John Bubello, CFP® CRPS®, talks about the pro's and con's of annuities. Need to contact John, click here More from the Retirement Income Blog...Copyright © 2020 | All Rights Reserved. John R. Bubello is an investment...