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Lost Sub or Implosion
Written by Steve | Published: |
The story about the missing submarine with five passengers on board breaks my heart, especially for those family members and friends they left behind.
Whether the sub lost connection and got lost in the deep blue sea or imploded because of the pressure. It seems at this point that those passengers are gone.
I wonder if they really knew or understood the risk they were taking on this venture to 13,000 feet below sea level to look at the titanic.
I’m in no way being disrespectful to them or their families, but as humans we often let our emotions drive our decisions instead of properly obtaining the facts and weighing out the risk.
Over my years serving others in the financial arena, there have been countless instances where my clients would talk about their financial battle wounds and scars and how they lost so much money.
And when I would dig a bit deeper the fact of the matter is that most of the time the client didn’t really understand the risks they were taking and was just hoping for the best or trying to get in on the excitement of a bull market.
To compare this to a dramatic time in the market let’s look at this chart of Black Monday back in October 1987. The stock market dropped 20% in a single day and then continued to decline. And it didn’t even get back to where it started for over two years.
Can you imagine being on vacation not watching your investments and coming back with a third of your wealth just disappearing?
It could be devastating.
The market nowadays is luring people into safety with its attractive short sighted run ups. When in reality we haven’t fixed the problems that caused the last downturn, the banking crisis we are dealing with or the bond yields that have been crushed.
I think we will see a lot more volatility in the market we live in now. So please be very aware of your risk and weigh out your investments or go into a strategy that will help you avoid all of this mess.
