The Power in Uncertainty
You’ll often hear that investors or markets "hate uncertainty." And that causes market drops and volatility.
Why do we hate uncertainty so much?
How can we look past our initial reactions and embrace the power of uncertainty?
Let’s start by answering a basic question: Why do markets, investors, and humans hate uncertainty so much? Well, for one, humans are wired to prefer predictability and certainty. And firms, traders, and other market players rely on forecasts and models.
When something big happens that throws the future in doubt (which happens pretty regularly), it makes their predictions and models inaccurate.
For long-term investors who measure success in years and decades, these blips can fade into the background noise. For short-term traders who need to show success in days and months, it’s a pretty destabilizing experience.
That freaks people out. And often leads to drops, volatility, and other extreme market behaviors.
How do we look past initial reactions and embrace the power of uncertainty? We can calm the noise and seek out information we can trust.
Here’s a few tips if you’re looking for a new perspective to find the silver lining hiding inside all the uncertainty.
- One: View it as a reality check. Uncertainty is grounding. It shows us, sometimes painfully, that we don’t know as much as we think we do. So, let’s embrace humility and accept how little we really know.
- Two: Be grateful for what we have. What are you truly grateful for right now? Now’s a chance to appreciate and be thankful for what we CAN be certain of. No matter what’s going on in the world, we all have blessings in our lives.
- Three: Embrace resilience. We all have an inner core of steel that’s only visible when something scratches the surface. Uncertainty challenges us to improvise, flex with the times, and build up our inner resources.
If you’re struggling with the uncertainty of current events, please make sure to join us this week for our live webinar on Thursday at 1pm (see below), or reach out directly to us. We’re always happy to talk with you.
Until next week,
Your Eagle Wealth Team
Register Today — Eagle Wealth Exclusive Live Webinar!
We invite you to join Chad Staskal, CFP®, Managing Partner of Eagle Wealth Management, and City National Rochdale Portfolio Manager, Robert Meckstroth, CFA, for a private webinar on the latest developments and what's ahead for the economy and markets. In this conversation, we'll examine what's happened in the past quarter and discuss everyone's big question — where do we go from here?
What we'll cover:
- Federal Reserve policy changes
- Rising inflation
- Ongoing war in Ukraine
- Recent market volatility
Thursday, May 5th, 2022
1:00 pm PST
You’re Invited on May 6th to our Eagle Wealth Shred & Sip Event
Our shred event is next Friday! Please drop by the Eagle Wealth parking lot for a late afternoon Shred & Sip on Friday, May 6th from 3:30 p.m. - 6:00 p.m. Come say hello to the team, enjoy drinks and small bites from Board in Bend, and meet Hans and Kim from our tax team if you haven’t had the chance to yet.
We’ve asked Data Delete of Oregon to be at our office to shred your documents for free. Afterwards, you’re welcome to leave your car in our parking lot, make a night of it, and head downtown to the First Friday ArtWalk!
Eagle Wealth Celebrates Tax Day with a Cycle Pub Tour
We survived our first tax season with our newly formed Eagle Wealth Accounting team! (You can read more about our tax services here.)
Our tax team had their noses to the grindstone the past few months so we figured what better day to celebrate than Tax Day. Eagle Wealth partners Chad and Mat told the team to prepare for an afternoon “special training”. Secretly, they arranged a cycle pub for the team to cruise downtown Bend while enjoying local beer.
It was an afternoon filled with well-deserved relaxation, a bit of biking, and a lot of laughter.