Markets Reward Discipline

The US and global stock markets have been in a slump for the last couple of months.  There’s been economic and geopolitical turmoil in every region, hence the slump.

Capital Markets have been perceived as ‘overpriced’ and ‘ready for a correction’.

And while those sentiments may be true and accurate, it still feels discouraging, or worse, upsetting, when volatility hits. And by volatility what I really mean is loss.

And so, this is when you step back and remind yourself of the fundamentals of why you are saving and investing: To take care of and fund your future self and family.

This may be in the form of being able to quit work on your terms to pursue your dreams, or to buy a new home, or travel, or fund a cause you care about, or a multitude of  other things.

How far away are these goals?  Likely they are at least 10 years away (caveat: for those goals that are more near term, you should already have allocated a different set of funds to meet these).

If you have done the work of finding a financial planner to create your financial roadmap, then you are able to ‘set and forget’ your portfolio, which has been aligned to your target asset allocation as a function of working with your financial planner.

And if you are able to ‘set and forget’, then you can ignore the turbulence that’s been in the financial and general news these last couple of months.

You’ll feel more empowered by focusing on your goals, on the amount you are regularly saving, and on how well you are doing living below your means.

These metrics are progress you can measure in very concrete terms.

These are the things that will cause you to not react and second guess your portfolio.

These are the things that will cause you to stay the course and to keep your emotions in check.

So stay disciplined by staying the course, because just like with any other goal we have in our life, markets reward discipline and perseverance.