RegretMarch 18, 2020 -
Categorized in: IAG News
One month ago our world was very different.
Back then we saw some clouds of uncertainty on the horizon, but nothing that impacted us personally. Most of the time those clouds dissipate, but occasionally they turn into a storm.
Looking back, we can always say “I had a bad feeling about this.” But if we are honest with ourselves, we know that a large majority of our bad feelings never turn into bad events. We easily forgive and forget those false bad feelings because everything turns out well.
The joy of relief is much greater than the regret of being wrong about bad feelings, and this is the case a large majority of the time.
It is the bad feelings which we do not act upon and come true that lead to regret. Those we find much less forgivable, even though it is impossible for us to discern between real and false bad feelings before events happen.
The regret of being right is compounded by our lack of action to prevent it.
Right now there are many short-term traders who regret not selling all of their investments on February 19 based on their bad feelings (which they have every day). They worry about how investment prices have fallen and cannot see beyond the next few months of challenges. They are living with regret, uncertainty, and self-doubt.
Right now there are only a small fraction of investors who have the discipline to follow their long-term investment plan. While they may have felt prices were high(er) in February, they recognize they are low(er) now which could present a long-term opportunity. They understand that short-term traders’ worry is highly contagious, so long-term investors are living in quarantine with the regretless confidence that this, too, shall pass in its due time.
At IAG Wealth Partners, our experienced advisors are here to help our investors through times like this. We have helped guide our clients through many financial market challenges over the last 35 years – from Black Monday to the Tech Wreck to 9/11 to the Great Recession and now the Coronavirus Pandemic. More importantly, we have helped them through the personal challenges they encounter in their journey.
While the short-term world is filled with regret, stress, fear, and confusion right now, we encourage you to focus on the opportunities the future may hold after the pandemic passes.
Quote of the week: Jim Masturzo: “Volatility should not be confused with risk. The permanent loss of capital, which happens when investors succumb to fearful thoughts and thus sell at inopportune times, is the investor’s true risk.”
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