Broker Check

Stay Seated With Your Seatbelt Firmly Fastened

| February 08, 2016
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Have you ever been on an airplane and the captain said something like this? "Ladies and gentleman, this is your captain speaking. We'd like to ask that all passengers remain in their seats with their seatbelts fastened securely for your own safety. We are experiencing greater than normal turbulence and may for the next little while. We expect this turbulence to eventually end and we will make it through it shortly. Our crew and this airplane have been through this kind of turbulence many times before, so we are confident that we will make it through this time as well. Thank you for your patience."
This kind of "turbulence" is analogous to what we are experiencing in the stock market right now. Each time we experience corrections in the market investors are tempted to run for "safety" by selling out. Our emotions tell us to run from risk as it is hard-wired into our humanity. However, our intellect tells us that corrections represent opportunity or as I like to say... "Big sale going on right now." Historically every market selloff has been followed eventually by a recovery. While we are tempted to think that "this time is different" we acknowledge that it likely is a repeat of the past. So as the captain of the airplane suggests, it certainly is a good time to stay seated with your seatbelt firmly fastened. We will eventually get through the turbulence to smoother skies and a safe landing. And certainly, don't jump out of the airplane!
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