What happened to all the optimism from a few months ago?!

It’s long gone.

It’s like it evaporated overnight.

Last week, with the market down a mere 3%, something interesting happened:

Investor sentiment fell off a cliff.

Well, That Escalated Quickly

In an environment that is rapidly turning pessimistic, volatility is spiking, bond yields are falling, and the stock market is dropping from its recent highs, now roughly back to election day prices.

Investors aren’t just worried about the stock market.

There seems to be broadening concern about the future of our government, that our economy might implode, that Social Security and Medicare are in doubt, that global trade will come to a screeching halt, that geopolitical conflict is a real possibility, and so on.

It’s almost as if many investors feel that the world is at an inflection point.

So much so that I'm hearing people repeat the four most dangerous words in investing:

While I could cite many examples of times when the world was, by most accounts, much scarier than today...

...I’m not sure that recounting those events would be particularly helpful at this moment.

Those events are now distant memories, and we recall them as far less troubling because we know everything turned out fine.

But they were tenuous times, to say the least.

Despite history, many pundits are describing today’s surprises and uncertainties as “unprecedented.”

But are they?

As writer Kelly Hayes once said:

Admittedly, it’s difficult to maintain patience and discipline in a world that feels like it’s falling apart.

I get it. I really do.

While I’m confident that history is as relevant as ever, I’ll admit that it may not provide much comfort as the storm clouds grow larger overhead.

But here’s a hard truth about today’s world:

Enduring uncertainty will not get any easier.

Thanks to our 24/7 access to real-time “news” that inevitably suits our pre-existing biases, we’re exposed almost exclusively to events that raise our blood pressure.

Our respective political preferences are irrelevant.

We’re all fed headlines that promote maximum anxiety and rage because that’s what keeps us coming back for more.

It’s as unfortunate as it is true.

With all that said, I want to offer an idea that might encourage confidence and comfort when you feel your blood pressure rising.

Here it is:

Remember that you have put in the work.

Remember that you have planned meticulously for incredibly wide-ranging scenarios to make you and your financial plan as resilient as possible.

(If you have not done the work to prepare or would like a second opinion, learn more about getting a Free Retirement Assessment here.)

Does financial planning guarantee success?

Of course not.

But good planning does encourage confidence that you are prepared for the unexpected, regardless of how it presents itself.

We’ve known all along that uncertainty would return.

It always does.

But my reminder to you is that times like right now are not a time to abandon your plan.

In fact, this is when the planning you’ve done is most valuable.

Times like this are exactly why you have spent countless hours thinking, planning, and strategizing.

It’s all been in preparation for the incalculable world we live in.

I’m not asking you to believe that we know when or how things will calm down.

I am simply encouraging you to have faith that you've done the necessary work and that you are as prepared as reasonably possible for whatever comes your way next.

This too shall pass.

Eventually.

Thank you, as always, for reading!

Stay wealthy,

Taylor Schulte, CFP®