A common refrain of investors during any period of stock market volatility is, “Yeah, but this has never happened before.” It’s true that the details of one volatile episode rarely perfectly match another episode, but there are underlying themes that are often identical. As prices decline, investor fear and uncertainty increases. As stock prices have historically declined momentarily, investor desire to sell low has increased.
Markets work. This too shall pass. It’s easy to let the news and financial commentary influence one’s view of investing. Without a strong investment philosophy to guide them, people also may follow the advice of friends, neighbors, or family, especially if the “insight” promises a fast, easy return. There is a reason Delap Wealth Advisory uses an evidence-based approach to portfolio design.
Spend three minutes remembering the countless moments of fear, uncertainty, and doubt that the stock market has successfully navigated over the past 92 years.