All of the following are recent history and all of them were supposed to mean market crashes that would wipe investors out…. but none of them actually did that.
· 1999 and Y2K
· 2000 election controversary (“the end of the Republic”)
· 9/11 (we were expecting a non-stop rhythm of terror attacks forever)
· 2004 election controversary (“the end of the republic”)
· 2008 election (Socialism wins and free markets would fail)
· 2009 Great recession (The “new normal”)
· 2016 Trump election (He will start WW3)
· 2020 Coronavirus (We will all die)
· 2020 Election (“The end of the Republic”)
Everyone loves flying from NY to California in 5 hours rather driving for a week. But no one likes the turbulence. When a plane hits turbulence, it feels like it will never end. Some even envision what the crash will feel like. Knowing the statistics around the safety of commercial U.S. air carriers means nothing while flying through the storm.
The same is true of the capital markets. We all know the math. But not everyone loves the downside volatility. There is a very real reason for this: it’s how God made us.
· “As your threat sensitivity rises, you’re more likely to bias your predictions toward something bad happening.” - Candace Raio (Cognitive Neuroscientist, NYU Langone Health in New York)
· “Once we start believing the apocalypse is coming, the amygdala goes on high alert…filtering out almost anything that says otherwise”. From Abundance: The Future Is Better Than You Think by Peter Diamandis and Steven Kotler, Feb 2012
The external factors we have are just making the problems worse:
· Social media
· Cable news
· “investment” newsletters
All of the above lead us to a confirmation bias that was introduced through fear in our own brains. Again, once we feel that first bump in the sky…we are convinced more will come and if they do we just feel the worst of the flight until, finally we either find smooth air or we reach our destination.
In investing, the only way to reach the destination is to stay in the plane! Not everyone is built to be a good investor. For those people, they have two choices: either put their money in holding tanks like insurance products and savings accounts, or hire an investment professional who will not be emotional about their clients’’ money.
That’s what people have hired me to do. That’s what YOU hired me to do. I won’t be the weak link in your investment philosophy, meaning I’m not going to let you jump out of the investment plane when turbulence hits. I’m not emotional about your money. Let me do the worrying for you.
Registered Representative and Financial Advisor of Park Avenue Securities LLC (PAS). OSJ: 5280 CARROLL CANYON ROAD, SUITE 300, SAN DIEGO CA, 92121, 619-6846400. Securities products and advisory services offered through PAS, member FINRA, SIPC. Financial Representative of The Guardian Life Insurance Company of America® (Guardian), New York, NY. PAS is a wholly owned subsidiary of Guardian. WESTPAC WEALTH PARTNERS LLC is not an affiliate or subsidiary of PAS or Guardian. Insurance products offered through WestPac Wealth Partners and Insurance Services, LLC, a DBA of WestPac Wealth Partners, LLC. CA Insurance License Number - 0D34103, AR Insurance License Number - 2195027. | Guardian, its subsidiaries, agents, and employees do not provide tax, legal, or accounting advice. Consult your tax, legal, or accounting professional regarding your individual situation. | 2022-143104 Exp. 08/24
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