Life & Money: Scary Market Hugs

Life & Money: Scary Market Hugs

September 16, 2022
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If you’re worried about the stock market, find someone to give you a hug.

That’s right. A hug.

It may come as a surprise, but that would actually do most of us some good.

When the markets go down and the financial pornography network starts yelling that you should save yourself, it feels like a wild animal is chasing you. The only thing to do is run!

Feeling scared is normal at that moment, and the last thing you need is a lecture on the history of long-term stock market returns.

You don't need facts and figures; you need a hug! You need someone to listen to you!

You need empathy, kind murmurings, physical affection—an embrace.

After the hugging is over and everyone is feeling reasonable again, you and your advisor can review the careful analytical work that went into designing your portfolio.

You know—revisit the goals and values that were baked into that analysis. You can even consider the weighty evidence of history and talk about how the best thing to do is stay invested. All of that is important.

But first, a big bear hug.

I promise, it will help.