It is early Sunday morning, and I’m already thinking about the economy and the markets. I know I should not be but some habits die hard. This poor soul still has not managed to shake the addiction.
Scary October is almost over. No more pumpkins, masks, spiders, or witches lurking about. October has a way of giving some investors the chills.
According to Investopedia, several major market crashes have happened during this month. Black Monday, Tuesday, and Thursday all hit in October 1929, ushering in the Great Depression. Then there was October 19, 1987 when the Dow plunged 22.6% in a single day. Yikes! Now that is spooky.
Investing, in many ways, is like discussing money with your spouse, it can be uncomfortable, emotional, and occasionally explosive. As I have told people for years, if you are waiting for all uncertainty to vanish before investing, you are going to be waiting forever. Volatility is part of the journey, not a sign that you are lost.
In my work, I make it a point to read articles and research that challenge my views. I avoid pieces designed solely to scare readers or sell ads. Some even veer into conspiracy theories and at that point, it is not research, it is Netflix material.
Luckily, I do not do this alone. I’m connected to a wide network of professionals across industries, analysts, and partners. Collectively, we have got hundreds of years of experience under our belts though hopefully not all showing on our faces.
Even in a bull market, things can go wrong. Some people expect their portfolios to rise every single day. That is not investing, that is daydreaming. Rational fear can be helpful because it keeps us alert. Irrational fear? That’s the stuff that leads to bad decisions and regret.
I do not measure my portfolio against fixed deposits. It is like comparing a cruise ship to a docked canoe and wondering why one does not move.
Anyway, I will wrap it up here. Time to put away the charts and forecasts and enjoy the rest of this Sunday with the family. Even market-watchers need a timeout before the next chart tempts us back in.