by Phil Lebkuecher | Nov 24, 2023 | Behavioral Finance | 0 comments
When markets and headlines become concerning, as they do just about every few months, remaining calm can be difficult – but is essential to making wise financial decisions.
Finding Your Calm
While we cannot control what happens in the world, the good news is that we can control the level of calm in our lives. Finding your calm is largely a function of what you choose to focus on.
James Clear, author of Atomic Habits, said “the most important skill we have is in controlling our attention.” I believe this is a very important trait for anyone who wants to achieve at least a moderate level of success in life.
So, where is your attention currently directed? Does it make you anxious or calm? It’s also important to remember that being euphoric is not the same as being calm. Being overly exuberant is the opposite end of the spectrum from anxiousness; but it’s also as far from being calm.
Finding Calm in Today’s Environment
Do you find yourself ensnared in today’s sensational and dire headlines? Reflecting on the fact that we have had crises before can help us put current concerns into perspective. Studying history shows we are pretty good at adapting, adjusting, and moving forward.
Our investment discipline at Shadowridge is to actively manage our clients’ assets to reduce the risk of large loss and seek market gains prudently over the long run. We use a disciplined long-term approach to reduce the risk, and therefore the investor’s anxiousness, during volatile markets.
Patience and discipline are the price to pay for long-term market returns. Making sure we focus our attention on facts and helpful perspectives can help us remain calm and endure the crises well.
I hope you and your family have a wonderful Thanksgiving.
© The Behavioral Finance Network