The End of The World

Perspective is so important, yet it's not easy. We get so caught up in our own world that it's hard to see the forest for the trees. Last week I wrote about "Common Uncommons", and I explained how history tells us that this decline, historically, has further to go.

The S&P 500 is down 5.6% from its peak on July 16, the 2nd pullback of the year. This is also the 29th correction >5% off of a high since the March 2009 low. Here's the complete list.

They all seemed like the end of the world at the time. Those that were able to stay in their seat were rewarded. Those that play the long game were rewarded. Those who fundamentally believe in the prosperity of long-term investing and the market were rewarded.

I know how hard it is. We're all human beings and are not wired for this stuff, I get it. But understanding our biases, understanding how we are wired, understanding why we respond or react in the way we do is incredibly helpful, and one may argue essential in surviving this game - it boils down to fear and greed. And then it's a whole new rabbit hole from there, which I won't get into in this post.

Perspective is so important. Play the long game.