History has taught us that financially tough times don’t last. Yet, when volatile markets appear, we see many investors still make unwise, impulsive decisions. On the other hand, it’s no surprise that successful investors can calm their emotions, look big picture, and rely on their disciplined economic process to benefit from the opportunity.
Remember, corrections in the market are not only normal, but expected. We urge investors to incorporate them into their long-term plan. And, while the dips are certainly uncomfortable, they actually create a tremendous opportunity for growth down the road. One of our favorite quotes at Beck Bode comes from Warren Buffet – “Be fearful when others are greedy and greedy when others are fearful.” In the midst of tough market times like the past few days, great companies with bright futures can get dragged down with the others. But the well positioned companies rise up quickly, and by sticking to our financial strategy and our process, we can profit from our anticipation.
That’s why it’s essential that we work WITH the market. Even when our lives are surrounded by news outlets preaching gloom and doom, and our portfolio is falling in value, it’s crucial to understand that these difficult times don’t last, and to keep moving forward. And we will keep moving forward. Because like any CrossFitter knows, the greatest gains come after the bar feels most heavy.