September 28, 2017

The Need for Advice Never Goes Away

You’re a young person just beginning to invest. You dream of someday having a large portfolio – $1 million, $5 million, $10 million invested. Do you think you’d be at peace then? Do you think you’d be calm or satisfied?

I can tell you from experience that you won’t be any of these things.

You’re an older investor who has done well in the markets over years and decades. You dream of a peaceful period for your holdings and a dwindling of volatility. And then we get into 2017 – a year in which, so far, we have experienced the lowest maximum S&P 500 drawdown in the history of the index. That’s a fact – 2017’s biggest dip this year is just under 3% from the high – this is unprecedented. We’ve never been in such seemingly safe circumstances.

Are you now at peace, then?

Absolutely not. At least, you’re not at peace if you’re rational. This cannot continue forever and you know this. Today’s “safe circumstances” cannot bring you confidence once your mind has been shocked. And in the last twenty years, it’s been shocked plenty.

This permanent condition of the human mind is why god sent advisors into the world. And this demonstrates amply why the need for advice never goes away.


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