By Eric Ellis | February 28, 2019
Thousands of miles above the earth in a spaceship smaller than a minivan, panic is suicide.
When NASA trains its astronauts they focus on one skill more than any other: How to remain calm in stressful scenarios.
When people panic, they abandon the plan, they ignore guidelines, and they make mistakes. They often stop thinking clearly. They just react, not to what they need to react to, but to the survival hormones that are racing through their veins.
This may be the source of our problems when it comes to investing.
If you felt this way over the last three months don’t feel bad. We are all human after all.
Uncertainty causes stress. Stress can be relieved by knowledge and experience.
Oct. to Dec. was one of the sharpest downturns we’ve seen in some time. A lot of people are surprised to know this is not unusual. The market drops 13.9% on average each year, but still finishes positive 3 out of every 4 years going back to 1980.¹
Our advice is simple:
Focus on your long-term goals rather than the daily headlines. News changes day to day and week to week, but your goals often remain the same.
by Eric Ellis
¹Source: FactSet, Standard & Poor’s, J.P. Morgan Asset Management Guide to the Markets 1Q 2019
Kathy Ellis CFP® CERTIFIED FINANCIAL PLANNER™