“The only thing we have to fear is fear itself.” – Franklin D. Roosevelt
I remember in those days leading up to the election how many people were asking whether they should sell out of the market. Some even more loudly after the election’s completion. Many since have been asking us at Trilogy what we are doing in the face of a “Trump economy.” These are all worthwhile questions for an economist. They are not however very good questions for your financial advisor. A better question, “Mr. Advisor, how are you going to help me ignore all this stuff that the media says I’m supposed to be worried about and stay focused on my goals?” Now that’s a question I would love to hear an answer to.
Any advisor who is trying to tell you the exact moment to be greedy or to be afraid is playing on hindsight. Even my example of what happened in and around the election only looks smart in retrospect. That’s why I used it.
Fear is a powerful motivator, and historically some financial professionals have used it to sell and make commissions for their clients. Have you considered a different way of looking at things? If one of the greatest influences on your success is level-headed focus on a worthy goal (having a growth mindset), what might happen if you focused on that?