We are really good at managing risk by looking backward and preparing ourselves to handle a situation we’ve already seen. But we’re not very good at managing risk by looking forward and preparing ourselves for something we can’t even imagine.

The problem is, “something we can’t even imagine” is precisely what we need to be prepared for. Because risk is what’s left over after you think you’ve thought of everything.

It’s not the car you see coming that will kill you… it’s the one you don’t.

Bummer, right?

Let me be clear: This doesn’t mean you should cover yourself in bubble wrap and lock yourself in your house.

The point is simply to foster general resilience. You know—like an emergency fund.

And guess what, emergencies will happen. When they do, general resilience provides a margin of safety.

That’s what will protect you from the thing you never saw coming… not trying to predict the future and certainly not bubble wrap.

As many investors scratch their heads about the current economy and global market conditions, some may question their long-term investment plan and the relevance of “taking the long view.”  Frankly, that’s human nature.  That’s our cave-person, fight-or-flight genetics kicking in.  Totally expected, as are our current market conditions when put into context.  While the following is a slightly longer read than usual, the payoff for reading (and thinking about the contents) are worth it.  Enjoy the analogy that ties together: volatility, bananafish, and your portfolio.  If you’d like to discuss the article further, simply call the office at 855-414-5500 or schedule time with us via this link.

Click here for the fantastic write-up by our friend Rubin Miller.

We asked Matt Zenz to narrate a 10-minute presentation on recent market volatility. If you’re our client, some of this will be repeat information for you, but it could prove helpful as a refresher.

Feel free to share it with others who could benefit from the long view perspective. It’s easy for investors to be influenced by the noise in the world.  This short talk might be just what they need.