Psychologically, the human reaction to a Bear Market and a real Bear in the woods is the same: fear. Our response is typically flight or fight. It's not our fault, we are hard-wired that way.
Today was a volatile day in the markets. The Dow Jones Industrial Average dropped over 1,000 points. The S&P 500 wiped out the entire gains for the year (albeit it's only February). There were roaring bears and scary big red numbers and down arrows on every news station.
So what?
In today's episode, I'll help you reframe today's events and perhaps future market drops as well. Yes, this will happen again, and again, and again. It's what the market does. It goes up, it goes down, it goes back up.
I'm not going to talk Alpha or Beta or Sharpe ratios or any other technical terms. This is about managing your emotions and controlling your behavior. I will do a little bit of simple math, just to help you put today (and other down days) in perspective.
Let me know what questions you have. Stay calm and carry on.
Popular Podcasts
On Purpose with Jay Shetty
I’m Jay Shetty host of On Purpose the worlds #1 Mental Health podcast and I’m so grateful you found us. I started this podcast 5 years ago to invite you into conversations and workshops that are designed to help make you happier, healthier and more healed. I believe that when you (yes you) feel seen, heard and understood you’re able to deal with relationship struggles, work challenges and life’s ups and downs with more ease and grace. I interview experts, celebrities, thought leaders and athletes so that we can grow our mindset, build better habits and uncover a side of them we’ve never seen before. New episodes every Monday and Friday. Your support means the world to me and I don’t take it for granted — click the follow button and leave a review to help us spread the love with On Purpose. I can’t wait for you to listen to your first or 500th episode!
Stuff You Should Know
If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.
Dateline NBC
Current and classic episodes, featuring compelling true-crime mysteries, powerful documentaries and in-depth investigations. Follow now to get the latest episodes of Dateline NBC completely free, or subscribe to Dateline Premium for ad-free listening and exclusive bonus content: DatelinePremium.com