When markets cycle lower like they have been lately, perspective is critical. If you’re not connected to someone with experience, it can be easy to miss the big picture.
If you zoom out a bit in history, most investors haven't lived through a prolonged price drawdown. For example, a bond fund manager would need to be around 80 years old today to have been working during the inflation of the 1970s (the last time we saw similar movements to what we’re seeing today). We are certainly living through unusual times.
But price swings aren’t surprising to those who are prepared, and you don’t have to figure things out on your own.
When we created your portfolio, we looked at your unique goals, time horizon, and risk profile. Our team has managed several market cycles, and we’ve seen plenty of ups and downs across the investing process.
Please reach out if today's markets have you feeling uncertain. You don’t have to go it alone: we are here to help you keep things in perspective.
In 2004, I entered a rodeo in Hope, Arkansas (see blog image) and was bucked off in 2.1 seconds. My longest ride on three different bulls was 3.8 seconds. The experience was humbling and taught me a lot.
1. I needed guidance from others who knew what they were doing.
2. I needed discipline, training, and strength.
3. I knew I'd get bucked off and would have to stand up, dust myself off, and get back on.
4. I wasn't going to be a professional bull rider, but I did something that most wouldn't.
5. The overall experience was exhilarating, and I cherish it to this day. It was worth the risk.
Over the last 17 years, we experience bull markets which can be very positive and bear markets which can feel like you got bucked off, hitting the ground so hard the wind is knocked out of you, bruising your ribs and tearing up your groin in the process (it happened to me). However, a short-time later you are healed-up and enjoying another bull market cycle. Going through downturns (bear markets) is not an enjoyable experience, but they do end. The key is staying disciplined to your long-term investment strategy and having open lines of communication with your financial advisor to answer any questions you may have so you maintain perspective.
I am here if you have questions or if you are interested in Northbound Wealth's guidance on life's investment journey.
Don't go it alone.
May 18, 2022