Your portfolio is like soap.
The more you handle it, the less you have.
Years like 2022 prove that.
An article from Bloomberg detailed a recent study by Vanda Research.
They found that the average retail investor was down 30% this year.
Meanwhile, the S&P 500 (at the time of publication) was down 17%.
I’ve seen this movie even more times than I’ve seen “A Christmas Story.” (You’ll shoot your eye out!)
In up markets, individual investors think they’re the next Warren Buffet.
They see their portfolio growing and they (smartly) leave it alone.
And then 2022 hits and they see their portfolio shrinking.
So they sell to “limit their losses”.
But what selling actually does is LOCKS IN their losses.
Then the market rebounds and they get back in.
But then it drops again and they get back out.
If they got in at the bottom and out at the top, they’d be winning.
But they don’t.
Instead, they buy at the top and sell at the bottom because they need to feel the FOMO before taking action.
And after you buy and sell at exactly the wrong times for an entire year, you end up down twice as much as you should be.
Thankfully if you’re reading this, you’re a Financial Zen Master.
And that means you’ve been listening to me nag and nag and nag…and nag you this year about #alwaysbeinvested.
Let everyone ELSE shoot their eye out.
Your a Financial Zen Master. You know better.
