It all begins with the fear of the unknown. Fear of the Future. It is one of our most basic instincts, to fear the unknowable.
This attribute keeps us alert for changes in the environment that could threaten our safety and wellbeing.
It is the drive that keeps us plugged into the evening news and makes us ask many unanswerable questions, such as, “Will there be enough money to maintain my standard of living? What is the economy going to do next? Will I be able to keep my job?” or “What is the market going to do next?”
Many people will not admit it but they will look at their astrology readings daily. This they believe will help explain the good and bad things that happen to them daily. REALLY????
During conversations people I learn their concerns about the future. They are concerned about the government. They are concerned about the lack of work ethic for many, including our youth. Nothing is the same they say. Everything is falling apart.
Of course, there is an old saying ‘Wall Street climbs a wall of worry’.
I contend the last generation was saying the same things thirty years ago. And forty and fifty and……. Let’s face it things change and most people do not like change.
Given we are in the NFL season. There was a time when it was believed that if the team from the ‘old’ AFL won the Super Bowl the stock market would go down the following year. Of course, this is nothing more than superstition and coincidence.
There are many other examples of coincidences that affect people’s reaction to the unknown. If this happens then the result will be this happens. What they don’t realize is that each event was the result of thousands of variables. All these variables must perfectly align for the past to repeat. This is virtually impossible.
The news media often preys on this fear of the future by showing clips of tragic events and doom and gloom predictions about the future. The newsroom motto is….If it bleeds it leads.
Disaster sells. It is not uncommon for this pervasive fear to cause stress, anxiety, and even sleepless nights. It is a chronic affliction in our modern age.
This desire to know the future is futile. The equity markets and every facet of our lives are in constant change and unpredictable.
To successfully invest for our future we must ignore the media hype and stay the course. Traders seldom succeed in the long run, investors will prevail if they remain disciplined.
A good course of action is to seek and hire an investor coach/fiduciary adviser. Your coach will help you build a prudent portfolio. And more importantly educate you and keep you disciplined to your strategy.
Do not fear the future… own equities….globally diversify …rebalance.
