Punch in the mouth

Mike Tyson once famously said before a fight with Evander Holyfield - “Everyone has a plan until they get punched in the mouth.” How are you doing with your plan now that Corona and the markets have proverbially punched you in the mouth?

As we are in the early stages of 2020, the Corona virus has rocked the financial markets. After a 2019 that saw everyone celebrating the stock market returns, we are now back to where we were. And all that happened over the course of 20 days (The fastest 20% decline in history). And don’t forget that in early 2019, we were still recovering from the late 2018 slide. So, in a sense, the markets are back to where they were in late summer of 2017. Two years of stock market performance gone in 20 days of trading.

So how are you feeling? Do you still believe that your plan will lead you to success? Or do you feel like backing up against the ropes, covering your head and ribs, and trying to play defense? Do you even have a plan? A plan only really matters if you can stick to it when you’re punched in the face.

If you’re feeling nervous about your plan, have your advisor re-run the numbers for you. Have them help you put the recent returns into perspective. The headlines grab your attention, but you may find that your accounts are not “the market.”

Oh, and that fight between Tyson and Holyfield – Holyfield won. Let’s just hope we don’t lose half an ear sticking to our plan.