Buckets – Things To Think About In A Down Market

There’s not much to sugarcoat right now.

We are in the midst of a pandemic unlike anything we’ve ever experienced in recent memory.

People are losing their jobs.

People are losing their businesses.

And the worst of it is, people are losing their lives.

But there are two dynamics of every crisis we should all be aware of.

  • One that relates to the safety of our society and loved ones; the actual dangers and precautions to be mindful of in a crisis.
  • And one that relates to the ‘over-reaction’ or better put mis-reaction we can take in the midst of the fear and uncertainty of a very challenging situation.

This note is about addressing what to do in the midst of the latter.

From a business owner’s perspective.

It think it is absolutely crucial to remain level headed and find different ways to remain top of mind and add value to the community that you serve during difficult times.

Not only does this serve as a great way to express, explicitly, your values and intentions; it is THE MOST FITTING moment to exemplify your principles and character.

It is in the absence of knowledge our character is defined and in the presence of knowledge our character is revealed.Ramneek Mathur

The other aspect of any downturn in the market is to identify opportunities that may present themselves as potential places to invest for future growth.

The stock market is an obvious place where this becomes apparent and is also the most accessible arena to exercise this principle.

Some pieces of advice from a fellow investor, investment manager and friend that has weathered many storms, including the financial crisis in 2008.

  • Downturns do three things to the economy:
    • It accelerates the inevitable for many.
    • It exacerbates the existing condition for some.
    • It incoherently puts pressure on the rest.

Whatever you are looking to invest in, the key is to determine which bucket what you are looking at falls into.

But remember two major principles in investing:

  • Markets can stay irrational longer than you can stay solvent.
  • Losing an opportunity to gain, is NOT a loss.

We are in the midst of some challenging times ahead.  I hope you and your family are able to weather this storm, remain in good health and stay safe.

And above all else, remember, Health Is Not Wealth (<Click on that to read more).

It’s an allowance – spend it well.








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