Remember that Sinking Feeling?
About 4 months ago a lot of investors were jittery, as pretty much everything was dropping sharply. Based on the posts I read on blossom, there was a lot of worry and fear in the community, particularly with newer investors. Of course, we also had the time-honoured “don’t panic, don’t worry, everything will come back” type of commentary/advice, and lo and behold, that’s exactly what has happened since then.
So, here’s my question. If you were one of those investors who actually was concerned (and that’s perfectly ok if you were), now that we’re back above where we were before the last correction, how are you feeling? Do you even remember the knots in your stomach ‘way back’ then, or has your mindset changed and now you feel you’re off to the races.
Another correction will come, of that you can be assured; we just don’t know when. When it does, will you be ready? Have you made any adjustments to your portfolio to avoid going through those sickening feelings next time?
In short, what did that experience teach you? Maybe you learned you have full faith in your portfolio and are ready to go through the next correction/crash. Same old, same old. Maybe you learned your tolerance for risk isn’t quite as high as you thought and have made adjustments to your portfolio. Or maybe you’re somewhere in between?
Having worked with clients over the years, I saw that although most investors share similar reactions, everyone is just a tad different, and we can use these experiences to understand ourselves better when it comes to investing. The journey is a long one. What were the lessons you learned last time around?
The timing of this post is intentional. We’ve had a few months to ride the wave back up, and now that the markets have recovered, it’s very easy to slip back into nonchalant mode and forget that we’ll be there again. But we will.
Very curious to hear your thoughts.
