I think its time to unload “The Picture.”
This is a selfie of me in front of the NYSE at the hight of the financial crisis and below is a snapshot of my 401K taken 4 years later.
What you see is a very worried 42 year old man whose investment returns on his life savings was dwindling close to its cost basis (the amount I saved minus earnings).
So what did I do? Nothing!, I did not adjust my 70% stock portfolio one penny. Sure I was worried, that is why I took the picture.
But I had some understanding of market history and human behavior.
I knew that stocks have always returned more than other investment options over long periods of time.
I knew that humans are hard wired to run to safety when they see danger, whether that danger is a predator or a threat to their net worth.
I also knew that humans will rush back to stocks with the first sign of recovery like we all did when the Powerball lottery grew to 1 Billion!.
For some very intelligent perspective here are two short, great articles: