18 November, 2020 Total Client Experience

Gone to Cash 2 Weeks Ago

I Knew This Would Happen
 

Why didn’t I sell my portfolio and go to cash a few weeks ago? All the signals were there, and I could have avoided the downturn.
 

After the 2008 financial crisis I heard the exact same thing. All the signs were there. I knew this would happen.
 

Really? If that were the case, why did almost every economist, money manager and politician miss predicting it?
 

For all those who “knew the present situation would happen” you have just experience “hindsight bias”. Hindsight bias is a natural human emotion that leads people to believe an event was more predictable than it was. Click here to learn more about this common human reaction.
 

Times like this can be stressful. Beware! Stress and emotions are prime ingredients to making bad decisions with your finances and personal life. Look at the graph below, China and South Korea are beating the virus. Think past the doom and gloom headlines.
 

 

A recent Financial Post article, getting out of the market is easy - getting back in is the hard part, is a common-sense rational view on how to view your portfolio. I urge you to read it.
 

Thanks for taking the time to read.
 

Paul
 

PS: We are here as your steward, and to help you through these challenging times. It’s how we react during these difficult times that will define our own futures. Common sense and rational thinking must prevail.