Amid this COVID-19 crisis, I’m absolutely terrified at what could happen next.
I’m not scared of the virus. Historically, we have been through far worse have always come out ahead. I don’t believe this time to be any different.
I fear that the results of poor decisions and mindsets when reacting to this crisis could have catastrophic impacts on our futures.
Here are my top five fears:
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Ignoring science.
Most world leaders are trusting the evolving scientific evidence guiding medical authorities in the advice they give us. This data forms the policies that are being put in place to limit the spread of COVID-19. Only a dim-witted few are basing their decisions on flaky opinions and self-serving ideas. These are the people that scare me. In the same way during this market downturn, I fear those who ignore the evidence guiding a successful investment experience and present us with half-baked opinions and flawed logic on how to invest your hard-earned wealth. I have seen fortunes absolutely destroyed as a result.
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How one bad investment decision will probably lead to another. The markets are down right now. I understand if that scares you and you might think you want to sell and get out. There is a small chance that you could be right, but the odds are that, long-term, you will be wrong. What makes this even more dangerous is the inevitable second decision: when to get back in. Experience has taught me that most people want to get back in when they are more comfortable with where the market is headed. You guessed it – they get back in when the market is higher. Basic arithmetic will tell you why that scares me.
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Coming out of this not having learned a thing. As Winston Churchill said: “Never waste a good crisis.” While we wait this out, people and organizations are completely transforming their value in response to this circumstance. We are connecting with others and learning in ways that we never did before. I overheard one entrepreneur comment that his company has packed 10 years of evolution into one month!
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That we continue being suspicious and distant, even when this crisis is over. It is critical that we trust the advice of our medical health officers. Now is the time though to be grateful for our relationships and to expand on them, even if that means we can’t extend a handshake or a hug.
- Trying to control what we can’t, rather than what we can. We cannot regret the past nor be anxious about the future. We progress by learning from the past, setting meaningful goals and focusing on what we can do today to make them happen.
Be careful with your thoughts and what influences them. Lean on science rather than opinions and speculation. Above all, see this COVID-19 crisis as one of the most interesting experiences you will ever have and learn from it.
This column is part of a monthly series courtesy of Richard Vetter, founder of WealthSmart Inc.
