Week In Review Articles
A couple weeks ago, it was “just a correction.” Now it’s “worse than 2008.” Nobody knows, so just exercise prudence. Those who were harmed worst in ’08 were those who abandoned their plans in panic. A great deal of a recovery comes in its initial stages. Nobody can time it well.
— Lawrence Hamtil (@lhamtil) March 13, 2020
Morgan Housel: We’ll Get Through This ˆ”The peaks and bottoms of market cycles always look irrational in hindsight, like they went too far. But in real time markets are just trying to find the limits of what people can endure. And they have to do that because any gap between an asset’s potential and what investors are willing to endure creates opportunities that will be exploited.”
Jason Zweig: Stocks Are in Chaos. Control the One Thing You Can. “Controlling the controllable doesn’t just mean shrugging off whatever is out of your power. It also means putting some calm and serious thought into what is within your power. Your future success may depend less on what markets do—and more on spending a few quiet minutes figuring out who you are as an investor.”
The Reformed Broker: I’m Here, To Remind You “This is the question every financial advisor is getting this week, from at least one or two clients. They’re asking out of genuine curiosity, not just panic or fear. And it’s a great question. The great answer is that you won’t know when the dust settles. There’s no airplane writing the “all clear” in the sky above your neighborhood. And when the dust settles, do you think stocks will be at their lows? Or will they have already rallied furiously, in anticipation of this?”
Humble Dollar: Fear Not “The surest way to make your portfolio grow—or slow its shrinking—is to save more if you’re still in the workforce and spend less if you’re retired. Indeed, for retirees, varying your spending is one of the most powerful levers at your disposal: You can’t stop the financial markets from falling, but you can limit the other big subtraction, which is the amount you pull from savings each year.”
All Things Are One: What If I Told You…“Uncertainty bewitches our self-belief into inadequacy. Uncertainty’s incantation is “there was a better way and you are to blame”. The spell of uncertainty immobilizes us until we fall back on unhealthy, avoidant, stress-inducing thought patterns and behaviors.”
Andrew Thrasher: Dealing With Chaos In The Market I”he markets and its participants get extreme tunnel vision on just the three inches in front of their face, the rest be damned. These environments will eventually present opportunity for the bold and profit to the smart.”
Washington Post: Why Outbreaks Like Coronavirus Spread Exponentially, And “How To Flatten The Curve” The simulations in the article are phenomenal! Be sure to watch them.
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