Investment markets have been tough this year, and there have been few, if any, places to hide. This experience stands in stark contrast to that of 2021 where we saw most of the major averages (global stocks) advance handsomely throughout most of the year. In the short term, this makes for a challenging experience for even the most seasoned investors. My recommendation: stick to, and trust your process. 

 

If you are tuned in to the talking heads every day, it might be time to turn them off. I find it interesting to see the narrative shift as markets have. "We could see this coming" or "I'm still waiting to see a bottom here" is remarkably different from "I'm still fully invested" and "this market still has room to run". What a change in attitude in such a short period of time.

 

Your process is what will help you in good markets and in bad. Instances such as the beginning of 2022 offer us an opportunity to learn about ourselves as investors, but that should only really affect how you deploy your investment process, not change it entirely. How strong is your stomach for volatility? How much risk are you truly willing to take? Do you put more emphasis on making gains, or avoiding losses. 

 

Our investment experience can shape short term perceptions. Over time, our investment experience leaves indelible imprints that are impossible to avoid, and irresponsible to ignore. If you are troubled by the recent market activity, give us a call and we can speak about it further. 
 

More to come later this week.