A Sure Fire Way to Cure Those “Lost My Shirt In The Market” Blues

Go Abstract, Not Concrete, and Do a Reality Check

I have a friend who lost $500,000 in this market correction.

That could have bought a Rolls Royce Phantom, a white picket fence house, or 125,000 Big Macs. $500K is very serious money. If not “fuck you money”, at least “damn you money.”

This loss is a sucker punch to the gut and her vivid imagination mourns what she lost.

If this market is hitting you hard in wallet and mind, I have a cure. It’s so simple you’re going to laugh. But bear with me – I didn’t pick stocks professionally for 30 years not to have learned a thing or two.

Think in percentages, not dollars.

“Be more specific” is great writing, marketing, or management advice. But when it comes to losing money, you want to go abstract, not concrete. It takes the emotion out. 

These questions clarified her thinking and maybe yours:

What PERCENTAGE of your portfolio and net worth do these lost dollars make up? (8%)

Is your portfolio behaving the way it’s supposed to? (Yes.)

How much are you down on a percentage basis vs. the market? 

(She was down 7.5%; the market was down 8.5%. She was doing BETTER than the market.) 

How much would you have lost to inflation had it been in a savings account? 

(7% guaranteed loss with no hope of recovery.) 

Have you made money in your portfolio over time? (Yes, a lot.)

Now ask yourself “Is it worth taking a periodic hit in order to book those gains?”

Feel better? You’re welcome.