It is early Sunday morning and, once again, I find myself thinking about the economy and the markets. I know I probably should not be but hey, this poor soul still has not shaken the habit. Some people reach for the newspaper and a cup of coffee. I reach for market charts.
Scary October is almost over. No more pumpkins, masks, spiders, or witches lurking in the corners. Some investors tend to get spooked this time of year, and not without reason.
According to Investopedia, quite a few infamous market crashes happened in October. Black Monday, Tuesday, and Thursday all took place in October 1929, followed by the Great Depression. And who can forget October 19, 1987, when the Dow plunged 22.6% in a single day? That was not a trick, it was definitely a treat for volatility.
Investing, in many ways, is like discussing money matters with your spouse. It can be awkward, emotional, and sometimes downright tense. 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.
In my work, I try to seek out articles and reports that challenge my thinking. I stay away from the ones designed to scare us into paralysis or sell ad space through fear. Some of them border on conspiracy theories. That is not information, that is entertainment (and often not the good kind).
Fortunately, I do not do this work alone. I’m connected to professionals across industries, including analysts and partners with hundreds of years of combined experience. We talk often, share notes, and try to stay sane while doing it.
There is always something that could go wrong even in a bull market. Some folks expect their investments to go up every single day. That is not investing, that is fantasy. Fear, in the right dose, is useful. Without it, we would be doing even sillier things than we already are. Irrational fear? That is the real villain in many portfolios.
Anyway, I will wrap it up here. Time to step away from the screen and enjoy the rest of this Sunday with the family. Even market addicts need to recharge and besides, the charts will still be there tomorrow.