In the Rush To Do Something

"I spent several days carefully investigating the disease but less than a minute thinking about the consequences of closing the road. Urgency, fear and a single-minded focus on the risk of a pandemic shut down my ability to think things through. In the rush to do something, I did something terrible."

This quote is from a book on the Ebola outbreaks in the 1970's. But it can be applied to investing.

Since the summer of 2021, the U.S. stock market has gone nowhere. It's been a relatively crummy period to invest. And there are pockets in a significant drawdown.

Going back to 2008, I would argue this has been our first extended, widespread slog. I don't count March 2020 because things rebounded quicker than investors even were aware what was happening.

But markets don't always go up. We know this, yet our negativity instinct focuses on the 10% selloff more than the 30% gain.

Assuming you have a multi-decade retirement to fund, don't do something terrible because you're in a rush to do something. Especially when you may have already experienced the brunt of the storm. There are consequences to closing the road.

--

Sources: JPM Guide to the Markets, Ben Carlson

The content in this  article was prepared by the article’s author and is not intended to provide specific advice or recommendations for any individual. Voya Financial Advisors does not endorse its content, and the views expressed may not necessarily reflect those held by Voya Financial Advisors.

Past performance is not an indication or guarantee of future results.