Spring has arrived and Jon Rahm just became the fourth golfer from Spain to win the green jacket at The Masters!
So let’s talk golf for a moment. Throughout the course of the event, or any golf match, decisions must be made regarding risk/reward. Do I try to hit over a water hazard or go around? Do I swing for the green, like Kevin Costner in the film “Tin Cup”? Or do I play it safe?
Sometimes that decision can lead to an exciting, successful outcome, and other times that same decision is a setback. In “Tin Cup” the outcome is … both. But unlike in the movies, one singular decision rarely determines the final outcome of the match, because there are four days of decisions like that.
Investing is similar. Investors are sometimes willing to take on risks to achieve their long-term financial goals, but not everyone handles it the same way. Some people are willing to embrace risk, and others prefer a less adventurous option. While it’s not possible to completely eliminate the risks associated with investing, managing investment risk – with asset allocation, diversification, and other strategies – is possible. This is where I can be of help.
Last year was a difficult market from start to finish, but it’s a new year and another beginning. We are facing some significant issues this year, with the recent troubles of the banks and the war in Europe getting more complicated. There are also signs of a recession in some sectors of the markets. The data supports the opinion that the average bear market has lasted approximately 1 ½ years, so I am keeping my eye on that statistic. I have also modified many client portfolios to reflect this current environment.
“The smartest thing to do when you have a lot of uncertainty is to sit back and gather information and do your analysis, and not jump trying to make big changes,” stated a source cited by Lu Wang and Isabelle Lee of Bloomberg. Uncertainty is likely to persist as economists and analysts assess how the American economy may be affected.
When the dangers of secondhand smoke were confirmed, an early solution in many restaurants was the no-smoking section, and visitors had strong feelings about which side they preferred.
Researchers report that emotions may be contagious. When an expressive friend, family member, or stranger shows emotion, it can influence the mood of those around them. In other words, exposure to positive emotions can invoke happiness and goodwill in others, while negative emotions may spread stress and anxiety.
We experience an example of this every evening through the toxicity of our news media, regardless of which side you’re on politically. The drumbeat of negative news begins well before the dinner hour and continues through 11 p.m., day after day. And, certain channels provide looping news and commentary 24/7. Is it affecting you?
Try this simple experiment: Cut back on how much you watch the news, and watch the effects. You may find your entire home environment lighten up in just a matter of days! Believe it or not, you will still find a way to stay current in all of the areas that you need to, especially as the internet is right at your fingertips.
And did you also know that stress can spread by scent?
No matter how stress is triggered, here are actions you can take to keep from being overwhelmed by secondhand stress and anxiety:
- Identify three things you are grateful for
- Draft a brief email praising someone else
- Discuss or journal about a positive experience
- Exercise for just 30 minutes
- Breathe deeply and meditate for a few minutes throughout your day
Lifestyle changes can help improve both the workplace and the home. Consider giving it a shot and see what happens.
Focus on the Positive
“For every minute you are angry you lose sixty seconds of happiness.”