When Everyone Else Freezes, It’s Time to Take Action
First, a disclaimer. Today’s article is going to discuss the stock market. I am not a financial advisor, so please do not consider anything here as specific financial advice for your situation.
The stock market is on sale.
For many, the instinctive reaction is fear. Fear about your portfolio, your retirement, your future slipping through your fingers.
Those who feel afraid are more likely to be paralyzed. To watch and wait. And worry.
But there is another way to respond to this kind of moment—with action.
Historically, the people who are able to overcome the fear and take action are the ones who see tremendous upside.
***
I’m talking about the market because it’s an actual situation we’re dealing with right now, but it’s also a great analogy for business in general (so if the market is up the day you read this, there’s still a lesson here).
On the one hand, it’s not possible to predict the future with absolute certainty. We never know 100% what is going to happen a day, week, or year from now.
On the other hand, we have lots of historical evidence we can look at to guess what might, or what will likely, happen in the future.
And precedent shows us, for example, that when the market goes down, it eventually comes back up. If you believe that history will repeat itself, then here’s one way of looking at the current situation: everything is available at a discount.
If you have the resources to invest at a discounted rate, you might be one of those people who makes a gazillion dollars (and there are always people who do).
I’m not trying to paint an overly rosy picture of the current situation. All I’m saying is to try to use the part of your brain that thinks critically instead of only reacting instinctively.
The people who come out of our current economic situation better off…what will they have done during this time? What choices will they have made? What actions will they have taken?
Figure those things out. Then, decide if, and to what extent, you want to be one of those people.
***
Warren Buffett says, “be fearful when others are greedy, and greedy when others are fearful.”
Right now, there’s a lot of fear going around. It’s broad-based today, but tomorrow that fear could be specific to your industry, your geography, or your business model.
This is not the last time you’ll be inclined to freeze.
Choosing to hit pause can be the right decision. I’m not suggesting you always need to take action or lead the charge.
But I would push you toward action more often than not.
Staying still may be safer. But entrepreneurship, in general, is less about safety and more about being brave.
