Dear Quentin,
This time last year, when the market was nosediving, my older brother advised me to get out of the market, and go to cash to conserve my assets. It was only going to get worse, he proclaimed, and he had 40 years’ experience in the market.
Granted, it was an ugly drop. Following his lead, I said hello to a $ 80,000 loss, while thinking I’d say goodbye to an even worse disaster. That same downturn soon ended, and the market recovered. It took me months to get back into the market.
If I’d ignored his advice and stayed the course, I’d be way ahead instead of way behind. To this day, I’m behind $ 55,000, so I’ve recovered some. I don’t feel good about being led down this path. Perhaps I have no one to blame for listening but myself.
Any thoughts on this matter would be greatly appreciated.
The Brother
Dear Brother,
Accountability is everything. You can start forgiving your brother by forgiving yourself. But in order to do that, you must repeat after me: “I, and I alone, was responsible for buying these stocks while the going was good, and I, and I alone, am responsible for selling them.”
Intent also matters. Your brother, whether he has four years or 40 years of experience, did not mean you harm. He may have been feeling concerned himself, and projected that worry onto you. You didn’t say whether he sold stocks too. Regardless, rinse and repeat the above quote.
“ ‘It was a hard lesson. But the fun part is figuring out what it is you have learned.’ ”
You are responsible for making money, you are responsible for saving money, and you are responsible for investing money. When you ask for advice and give 100% of your decision-making over to that person, you are making a choice. You are also handing over your power.
It was a hard lesson. But the fun part is figuring out what it is you have learned. 1. Don’t sell your stock during tumultuous times based on fear. 2. Don’t give up your own agency. 3. Don’t torture yourself by counting every rise and fall. That is what got you into this situation in the first place.
The situation, by the way, is temporary — so you can now choose to suffer, or you can take an action and choose NOT to suffer. Close your laptop, call your brother and ask how he is doing, stick with it for the long haul this time, and take a walk and get in some steps.
You can email The Moneyist with any financial and ethical questions related to coronavirus at qfottrell@marketwatch.com
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