You can only imagine the despair when impatience rules the day.
On a recent sailing trip the current in Woods Hole was dead against us. Instead of fighting the current we decided to wait for it to change in our favor. We anchored outside of Hadley’s Harbor, had lunch, went for a swim—it’s hard to imagine a more idyllic spot on the water.
We made it to Edgartown on the Vineyard later in the day. Waiting out the current ended up being a great decision.
Waiting out the recent junk bond sell-off was never an option for some retail investors. Mom and pop investors didn’t understand the risks or ignored them—selling their mutual funds and etfs to the tune of $13 billion over the last four weeks. Institutional managers have swept in to buy pieces of the wreckage.
The takeaway for you is to make sure you understand the risks in your portfolio before the tide runs against you. Nothing is more valuable than your peace of mind.