Fear Versus Fact

Invest with knowledge, not emotion.

The other day I met with a potential client that had previously jumped ship when the market went south.

The year was 2000. The market had some profitable times from 1992-2000, and then the dotcom crash happened and my guy lost $60k.

After that he was sick of the market. He cashed out and put everything into a bank account that offered returns that didn’t even hedge for inflation.

It takes the market a while to recover after a crash. Some benchmarks are back to where they were within a couple years, others take a little longer.

It’s been almost twenty years since the dotcom crash and the gentlemen I met with has never fully recovered.

I’ve heard that F.E.A.R. has two meanings:

Forget Everything And Run

OR

Face Everything And Rise.

As a financial advisor, I can never guarantee a client that they won’t lose money if they invest (if you meet one that says they can, run!).

But I can equip my clients with the historical facts of market returns and diversification so that they can invest with confidence rather than fear.

Are you operating more on fear or fact regarding your financial plan?

Let’s talk about that.