Layoffs started early last year in the tech sector. Now layoffs are picking up steam in other sectors as well.
Interest rates shot up with inflation. Then, they showed more volatility than has been seen in decades - maybe a century.
Now banks are going under, and the momentum is picking up instead of alleviating.
If you're a long-term stockholder, like me, you don't want to get spooked by the unfolding events. When the market tanked in the GFC, I sold a few companies that came back spectacularly in recent years. I could kick myself. But it is essential that your holdings are well managed, reasonably levered companies.
The achilles heel of a long-term holding plan is not mentally inuring ourselves for the challenging macro events that are creeping up on us right now. It is important to understand and recognize that our own behavioral biases can easily shred our future plans.
Some think they can sell all their stocks and then get back in at a better price later. Forget it. People who sold out in Dec 2018 or March 2020 didn't get back in and lost out of an absolute booming market.
Be mentally prepared and when we come out of this difficult macro environment, you'll be glad you did.
Be smart, be well-read, be aware and be successful.
“The stock market is a device for transferring money from the impatient to the patient”
- Warren Buffett
