Message from Jon
A difference experience makes...
As I return to the office today (Thurs) from a series of meetings, I stare into a screen that demonstrates a 328 pt. loss on the DOW 1, a 175 pt. loss on the NASDAQ 3, and 37 pt. loss on the S&P 500 2 -all in the ranges of 1% and 2.5% down-and I am thinking to myself, I wonder how many clients are going to log in and "check their accounts" and how many are simply not.
Remember when you got your first new pair of jeans as a young adult and you were proud of them, right? They were all clean, neat, and have the crease down the leg. They maybe went with your favorite outfit or just plain felt good.Then, you stepped in a puddle and immediately wanted to search your new pants for any sign of damage!
After a while though, those new pants turned to old and you were no longer really concerned about the damage puddles can do. Experience teaches you a lot about things you go through, just like it teaches you a lot (or should) about investing. On days that the markets are rough or experiencing a correction/slide, the new account owner is inclined to log in and check their accounts, while the experienced one does not.
Experience teaches you that when, not if, you stumble into puddles or can't get out of the rain fast enough to avoid getting wet, it is not the end of the world. This too shall pass, and the sun will again shine, clothes can be washed and accounts, rebound.
Logging in on the same day each month will give you enough perspective without causing you emotional swings that end up in behaviors that you regret over time. Don't make the mistake of logging in too frequently-it doesn't serve you well emotionally, but it WILL cause you to second guess your choices, which is never a good idea in the end anyway!
Till we speak again, enjoy your week!
1: DJIA Chart
3: NASDAQ Chart