Crises in Context

Crises in Context

One thing investors can count on is that they will hear numerous reports economic and market crises throughout their investment experience. Some of these will be actual crises; the majority will be nothing more than noise.

Crisis du Jour

The crisis du jour, as spewed by the financial media, pertains to predictions of an upcoming recession and bear market. Such news often results in investors becoming anxious, stressed, and itching to do something to protect their accounts. That is seldom a profitable move.

“Far more money has been lost by investors…trying to anticipate corrections, than has been lost in the corrections themselves.” – Peter Lynch

When faced with a crisis, or fears of an upcoming crisis, the best thing to do is take the long view and put the purported crisis in context.

Faux Crises

For instance, when it comes to talk of recessions, we saw similar headlines as we see today in 2014, 2015 and 2016[1]. Not only did recessions not materialize at those times, but the market is up significantly from those faux crises.

Put it in Context

For the next “crisis”, just remember to take a step back and put it in context. We have had many real and faux crises this century. And yet the economy adapted, and the market is significantly higher today.

We cannot predict nor control what the economy nor market will do. But we can ensure that our investment decisions are guided by our plan, and not the crisis of the day.

– Kaleb Paddock, CFP®

[1] Headline referenced include: ZeroHedge on Mar 16, 2014, Business Insider Oct 11, 2015, WSJ June 19, 2016.

Learn More

You can learn more about Ten Talents and Kaleb Paddock, a financial advisor based in Parker, Colorado, by clicking here.

Kaleb can be reached at (720) 710-0939 or kaleb@tentalentsfp.com.

You can check out the Ten Talents YouTube channel by clicking here.

About Kaleb

Hi, I’m Kaleb. I’m the Founder of Ten Talents and I’m blessed to be regularly featured in CNBC, MONEY, and Business Insider personal finance articles. I’m a CERTIFIED FINANCIAL PLANNER™ (CFP®) Professional based in Parker, Colorado and I’m a fiduciary and fee-only advisor.

Put simply, this means that I don’t sell you financial products, I act in your best interest at all times, and my pricing is clear and easy to understand.

My Client are Eyeing Retirement Decisions

My clients are eyeing retirement decisions, often work at technology companies, or have experienced a sudden money event (inheritance, home sale, business sale, stock IPO, gift).

I love bringing confidence and clarity to your financial situation and I’m passionate about helping you take control of your financial future.

You can learn more about me and Ten Talents by visiting my website: www.tentalentsfp.com.

©2022 The Behavioral Finance Network.