Why is Investing So Hard Right Now?

“Investing is half as technically complex as it’s thought to be but twice as emotionally difficult than it is assumed to be.” - Morgan House

United States Special Forces Insignia

My dad was a Green Beret in the Special Forces. He always told me that, "being in the Army is mostly boredom, punctuated by moments of terror". The chart below shows us how this applies to investing. Bull (rising) markets are usually powerful and long-lasting. That's when we usually feel confident and complacent. Bear (falling) markets are usually short in duration and high in intensity. Yet our reaction to falling prices, despite these declines being as routine as the season of winter, seem to be magnified because of the fear and worry it generates. Please take a moment to review this chart for a perspective reminder. We don't know how long this 'winter' will last, but one day it will end and spring will once again be here. Stay with your plan.