Today was significant in several ways. The DJIA has fallen just over 20% from it’s high, marking the end of the bull market for the DOW that just celebrated it’s 11 year anniversary on Monday. We’ve witnessed the second fastest reversal in the market’s history initiated by COVID-19 with additional fuel provided by actions of oil producers Russia and Saudi Arabia all within the political landscape of an election year that typically creates its own market volatility. President Trump just announced a 30-day ban on travel from Europe among other ideas to address health and financial concerns that were at least initially met with declining market futures. So what are we going to do about it?
There is no doubt that the spread of the virus is a serious health threat, but the fear that is spreading even faster is the real poison when it comes to your financial life plan. Fear is a dangerous emotion that can cause unreasonable responses to a variety of circumstances. Fear is a liar that burns the presence of context from our otherwise capable minds so that we will become adopters of any information that agrees with the fear that is consuming us.
Much of that information fueling our fear is straight lined into our minds through our eyes and ears by 24/7 access to all media outlets regardless of their political objective. The politics of winning your attention is a harlot to be hired with the currency of fear. Presidential election cycles always escalate the value of your approval with news outlets who will, at all costs, fight for your irreplaceable time.
So what do we do? We lead. Not out of fear or pretending to know or understand things any honest person would realize. We lead by conviction that we gird ourselves with on a daily basis allowing us to do what we believe is right and at the same time expose ourselves to the possibility of being wrong. Leadership is not a guessing game, but rather a well planned approach to a common goal. The goal is to help you achieve your needs, wants, and dreams and the roadmap to that success is defined by your financial life plan. When bull markets run with abandon it is commonplace to also abandon your financial life plan, after all, everything is fine. But times like these are a solemn reminder of the importance of creating, maintaining, and fully implementing a financial life plan that can answer questions like, “Will we be okay?”, “Does this market decline change our plans?”, “How can we take advantage of this situation?”. Without a financial life plan we are ships without sails tossing in a stormy sea.
I encourage you to resist the poison apple of fear and prove the true worth of your time and attention by not allowing it to be purchased by the politically driven media. Instead, turn your attention to what you can control and revisit your financial life plan to gain invaluable confidence and a renewed sense of direction. If you haven’t taken the time to create a plan there is no time like the present.
Our team at FI Advisors is here as your steady guide at all times treating you the way we want to be treated. We are passionate about providing financial life planning with a purpose so that you will be confident in all circumstances free to embrace your true identity independent of the winds of change.