In my last blog post I wrote about the Fear of Financial Suffering. We often get paralyzed by having to make financial decisions, and end up putting things off.
Days in the market like yesterday can scare people away from putting money to work, but having a system or plan in place can make things less frightening.
Here’s what I’ve been reading this morning:
- When the market is rallying, a lot of crazy things happen. This article points back to the Dot Com bubble, and a few quotes from Warren Buffett about how he decided to sit that one out in favor of long term risk management over short term euphoria.
- Rip Van Winkle fell asleep for 20 years. This article outlines what would’ve happened to your investments if you simply fell asleep for 20 years and did nothing to them. It also looks at some shorter time periods where plenty happened in the market, but the market ultimately went nowhere.
- The pandemic turning people into day traders of bankrupt stocks was NOT something we saw coming. Ben writes about a few important points that this crazy turn of events has reminded him of.
- In Bob’s latest letter, he writes about the tribalism we all participate in. While we think of ourselves as judges, fair and objective, we really are more like lawyers that search for any detail that could fortify our already existing beliefs. Bob challenges us to step away from our entrenched beliefs.