For over 10 years, I checked the market many, many times a day. This was an addiction like any other – I felt compelled to check. Worst of all, it was a distraction from the work that really makes a difference to my clients.
I am not alone. Most financial advisors check the markets frequently, but why?
I foolishly would tell myself, “I need to keep checking my phone app until the red (negative market) transforms to green”, as if my checking the market had any bearing on its direction. I have to admit that while the positive market days gave me an initial, cheap shot of adrenalin, my energy was flattened by the 10th check.
Even as I write this, I feel the weight of the mental, physical and emotional toll this behavior was causing.
Enough Is Enough
On March 1, 2016, I made a declaration to my 45 employees: I’m not checking the market for a month. Instead of checking, I’m going to shift that time towards helping clients reach their goals.
The first day was tough. I thought, “What will my clients think of me, a financial advisor, not checking the stock market?” But after just a few days, rational thought took over. I was able to remember that market movements are only interesting over 5 to 10 year periods. Over these longer periods, the trend lines of the markets are consistently upward; 97% for the 10-year periods and 94% for 5-year periods over the past 100 years.
I felt more relaxed and I had more time to put towards helping my clients:
- Decrease their taxes
- Make decisions around how to leave their assets and values to the next generation
- Use their money to further their life mission
- Allocate their assets for higher returns
Peace of Mind
After one month, I thought why go back to checking the market like that? I’m so much more productive now. Plus, Abacus utilizes disciplined and thorough investment philosophies, based on Nobel-Prize-winning academic research, to create diversified portfolios designed to endure all kinds of weather.
And so it’s been ever since. Yes, I have a general sense of the market’s direction, and I’m on top of my clients’ progress towards their goals, but I am no longer worried about the market’s daily ups and downs. I’m spending time doing the things that count for my clients.
Imagine if all financial advisors shifted their focus from an activity that does nothing for mankind, and instead focused their life energy on what does add value to clients. Does my story sound familiar to you? Whether you’re an advisor, an investor or a client, it’s time to assign yourself the task of finding an alternative focus when your mind wants to press that stock market icon on your phone.
