Good morning & happy Monday!
The greatest danger in times of turbulence is not the turbulence; it is to act with yesterday’s logic.
Peter Drucker (1909-2005), Australian-American management consultant, educator & author
Recently I had the tremendous privilege of taking my family to Hawaii. It is such a wonderful place, and we had a marvelous time. We flew from Tampa to Denver, Colorado to San Jose, California to Maui, Hawaii. We had to leave our home at 3:30am to be at the airport by 4:30am to catch our 6:15am flight. During that travel day we were in 4 different time zones and traveled roughly 4,800 miles. Total flying time, including layovers, was almost 15 hours. It was 6pm (Hawaii time) before we got to our hotel in Maui, so from my home’s door to my hotel door was 19 ½ hours. It was one heck of a travel day … needless to say, I was exhausted by the time I stepped foot into my hotel room.
On our 3rd flight from San Jose, California to Maui, Hawaii the pilot warned us before the plane even took off that there were likely going to be some “bumps” for the first couple of hours of the flight. Well, he was correct. It’s quite unsettling to hit turbulence at 36,000 when you look out your window and all you can see is the Pacific Ocean in every direction. Even though I know it’s designed to do it, it’s still unsettling to watch the plane wing bounce around … especially when we were hundreds of miles from any land.
Investing can feel like a long journey and there are ‘bumps’ along the way. No one can predict exactly when the ‘bumps’ will occur, exactly how long they will last, or how ‘bumpy’ a certain section will be … but ‘bumps’ are all part of the journey.
In order for me to get to Hawaii I had to put up with the ‘bumps’ to get there. I had the option of avoiding the ‘bumps’ by not going on the trip, but then I would have missed an amazing destination/experience. I’ll take the ‘bumps’ so I can get to the destination.
In order for us to arrive at the destination we want financially, ‘bumps’ are just part of the journey. They aren’t fun, no one likes them, but if you want to arrive at your financial goals, they are a necessary part of the journey.
My friends, investing is bumpy at times … but life is bumpy at times.
It’s interesting because I was less unsettled during the ‘bumps’ on my flight to Hawaii because the pilot had warned me in advance to expect them. Had there been no warning or no communication from the cockpit I probably would have been quite a bit more nervous. As a pilot, I know he experiences these ‘bumps’ all the time, and it’s no big deal for him or the rest of the crew.
Likewise, these weekly emails are designed to provide communication, so you are comforted that even though the ‘bumps’ are happening they are not unexpected … and they are not a cause for concern.
In good markets, bad markets, and sideways markets my message remains consistent: stay focused on your goals.
One of my go-to sayings is “enjoy the journey.” If you focus on the ‘bumps’ it will just make the journey so much less enjoyable.
Make it a wonderful week ahead!