At some point in the future; possibly in the next 3 months and certainly in the next 3 years, the stock market is going to have some unpleasant days which may lead to unpleasant months. Investors, in general, will have all logic scared out of them. Our most successful clients all share a similar mindset which they have followed over the years. If you would like to attain similar results, it starts with this way of thinking which then leads to better decisions during emotional times:

1. I will not change my investment objectives while the market is down.
2. I will remain focused on my long-term financial goals and not be swayed by what is happening around me.
3. When the market is at its worst, I will not sell my holdings.
4. If I have extra money, or can find extra money through selling some of my other assets, I will add to my holdings and buy as much as I can at discounted prices.
5. I’m likely going to live a long time, and I understand that owning great businesses is my best hedge against inflation. I will put up with short term uncertainty to ensure that my assets grow ahead of my rising costs over the long-term.
6. I will keep in mind that, as uncomfortable as this roller coaster might currently be, it is still the best investment option available. Holding a large proportion of cash and bonds is not a viable alternative for a long-term investor. This emotional ride is the price I need to pay to live the retirement I want and to pass on a legacy to the people I love and the causes I care about.
7. The newspaper will likely be uniformly negative during a major crisis and I will not read, listen to or believe negative stories told during that time.
8. There is a difference between feeling scared and making a mistake that will derail my financial future. I will lean on my advisor to help me make clear-headed decisions when I am afraid.
9. I will do my best not to look at my investments during times of crisis. I understand that the frequency with which people, in general, watch their investments is correlated with an increased aversion to volatility and a subsequent decrease in investment returns.
10. The market has been through many of these cycles in the past and it will recover the next time as well. I will do my best to take advantage of the opportunities we are given to set myself and my family up as well as possible for the future.