So I just started reading “The Psychology of Money” by Morgan Housel…
Lance Drucker, CLU, ChFC, President and CEO of Drucker Wealth, has been accepted into Forbes Finance Council, an invitation-only community for executives in accounting, financial planning, wealth and asset management, and investment firms.
As COVID-19 continues to spread and New York City continues to be on pause, everyone is adjusting to new lifestyles in an effort to curb the spread. While there are many factors of this pandemic we cannot control, we must continue to create new routines and habits to remain physically and psychologically healthy. Below are just a few of the actions we can take.
Understanding the difference between volatility and risk is the single most important idea for us young people to understand as the stock market (and the economy) are going crazy all around us. The market right now is EXTREMELY volatile...I'm speaking with clients all day and believe me, it's scary out there. We all just need to hold onto one truth: market volatility is normal and so are market corrections! Understanding that nothing has changed for you as a long term investor will give you the fortitude and the faith to keep holding on...which is the single best decision you can make for your financial future right now.
I can't think of a better, more meaningful time to appreciate the inevitable upward trajectory of the stock market (and the economy at large) than right now...when it all looks so bleak!! Knowing these truths, and acting upon them, when everything around us seems to be crumbling will give us the power and conviction to get through it not just this time around...but every time after this too! The next few months are going to suck. Companies will be temporarily thrown off their game. The economy will lag. And then all of a sudden, they won't. They'll adapt. The economy will rebound. And the world will advance beyond this. it is the only way. There is nothing on Earth I'm more confident in.