Expectations
The NFL draft is over. Teams selected 257 players over a course of 7 rounds at an event hosted the smallest city (by far) in the NFL. And the biggest story of the draft was not who was picked first.
This is likely because expectations were met. Everyone expected quarterback Cam Ward to be selected first, and he was. This was, therefore, not the big story.
However, Cam Ward’s story is one of persistence that deserves more attention than it mustered during the draft. You can should learn more about this unrecruited zero star number one pick here.
Instead of Cam Ward’s inspiring story, the number one story around the draft centered around failed expectations.
Shedeur Sanders was expected to be one of the top quarterbacks selected in the draft. He grew up around football, has tremendous athletic abilities, and his college statistics are excellent. By all measures, Shedeur’s physical skills would make him an asset to any NFL team.
However, instead of being selected within the top echelon of players, the Cleveland Browns selected Shedeur Sanders as the 144th pick. Expectations were not met. Headlines were made.
Sometimes life unfolds in line with our expectations. We have a very human tendency to overlook this not news. You made it safely to work today. Your family is healthy. You have a comfortable home to return to at night. The financial markets are behaving themselves. This is all fantastic news, but rarely makes our personal headlines. To be honest, they barely merit a second thought in our busy lives.
The exact opposite is true when our expectations are not met. You are involved in a car crash. You or your family face health challenges. You must make an emergency furnace replacement in your home. The financial markets experience downside volatility. These unexpected events are big news and require an immediate response.
Except one of those should not be big news, and you can guess which one. Many people suffer from having incorrect expectations for the financial markets. They completely understand that the markets usually go up over long periods of time, but strangely never expect that downdrafts occur even though history is full of frequent unpredictable market stumbles.
Investors with reality-based expectations have a different perspective on market downdrafts. They view them as opportunities to take advantage of reduced asset values to rebalance their portfolio allocations, potentially partake in Tax Reduction TradingTM, or make other tax-savvy adjustments with long-term benefits.
While there are truly unexpected events in life that require an immediate response, financial market volatility is not one of them. Expect it. Take advantage of it. Perhaps even let it bring a slight smile to your face.
Quote of the week: James Clear: “Life is harder when you expect a lot of the world and little of yourself. Life is easier when you expect a lot of yourself and little of the world.”
Securities offered through LPL Financial. Member FINRA/SIPC. Investment advice offered through IAG Wealth Partners, LLC, (IAG) a registered investment advisor and separate entity from LPL Financial.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results.
Stock investing includes risks, including fluctuating prices and loss of principal.
Past performance is not guarantee of future results. All indices are unmanaged and can’t be invested in directly. The modern design of the S&P 500 stock index was first launched in1957. Performance back to 1950 incorporates the performance of the predecessor index, the S&P 90.
Any opinions are those of IAG and not necessarily those of LPL Financial. Expressions of opinion are as of this date and are subject to change without notice. This information is not intended as a solicitation or an offer to buy or sell any security referred to herein. No strategy assures success or protects against loss. Investing involves risk including loss of principal.
The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results.
There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
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