We've all be through a lot, these last few months.
Our own journeys will have all been different, and there's no doubt it's been tougher for some than others, but we each share a resilience that has seen us through for better of worse, and one that we now know we possess within us. And that's resilience: it's what keeps us fighting and it's vitally important for our health and well-being.
What exactly is resilience?
Here are two definitions (Courtesy the Lexico online dictionary):
- the capacity to recover quickly from difficulties; toughness.
- the ability of a substance or object to spring back into shape; elasticity.
Resilience in troubled times is an important skill to strengthen and develop, not just against something as significant as a pandemic but for the normal challenges that life throws at us.
Who is The Resilient Investor?
It's really helpful to look at the qualities of resilience and how can these be applied to help private investors keep their heads in tough times and keep on building their assets.
- are willing and able to roll with the punches.
- are prepared to change tactics and maybe strategies when the unexpected happens with world events
- will always keep to the guiding principles of the investment giants as well as those they have agreed with themselves.
- don't panic - this too will pass.
- are strong but recognise their humanity. We can all make irrational decisions under stress, and pandemic lockdown has created in many an underlying layer of "white noise" stress that may go unnoticed but can influence our actions in subtle ways. This doesn't in itself put a halt on investment research and activity because they realise the effects and compensate.
- get help when needed. A second pair of eyes, a sanity check on their decisions before they make them, from people and services they trust.
- look after their own well-being. For many more reasons than financial of course, but keeping one's investment head in a time of crisis is a true test of resilience.
- work on their strengths. There is no resilience mountain top: this is a journey throughout life.
- plan for and endure the financial "rough going" along with the good times!
These are just some of the characteristics of a resilient investor. Resilience is taught, learned but most of all experienced - it's a lifelong journey. The silver lining in crises is that whatever the good, bad or ugly comes out it, our mental resilience grows stronger and prepares us better for the future.
Wishing you strength, courage and ever-growing resilience!