Stormy Weather

It’s the last day of the 3rd financial quarter of 2022. I’m looking out the window as Hurricane Ian blows through. And I’m thinking about the illusion of control. 

This hurricane has decimated parts of Cuba and Florida. And it’s not done yet. Early estimates on insurance claims in Florida alone are already north of $50 billion. That doesn’t include the loss of life or the sentimental losses, which can’t be calculated. Four walls and a roof aren’t always enough against severe winds and storm surge.

Economically, this year has been no less alarming. Inflation has eroded purchasing power at a time when financial markets have erased trillions of dollars in paper losses in the United States alone. Diversification only does so much to protect a portfolio. Just like a hurricane, it can be a while before we know the true economic damage of a particular chapter like the one we’re living through. But the uncertainty takes a toll.

It makes you wonder what you can, in fact, control. Any religious tradition is quick to remind us that holding onto control doesn’t work to our advantage. The Buddha would tell us that desire for control leads to suffering. What we desire for an outcome rarely comes to fruition. In the book of Matthew, Jesus asks, “Can any one of you by worrying add a single hour to your life? . . . Therefore do not worry about tomorrow, for tomorrow will worry about itself. Each day has enough trouble of its own.” And even Bob Marley instructs us, “Don’t worry about a thing. ‘Cause every little thing is going to be alright.”

That doesn’t mean all hope for stability is out the window.. In the face of a hurricane, we have amazing tools and technology that can offer us the chance to prepare. We can heed local warnings. We can use resources like ready.gov to know what to expect and what to have on hand.

In times of economic uncertainty, we cannot control the direction of the markets. We must ride out the volatility to beat the longer term effects of inflation. That’s the deal. And at times like this, it can make us question why we accept this bargain at all. While we wait for the storm to pass, there are things we can do. We can evaluate our emergency funds. We can review spending habits. We can talk to somebody before giving in to the urge to move our portfolio to cash. 

You control your inputs. Financial news networks were not created to soothe your mind. Do not confuse information with wisdom. You continue to trust your advisor, or find a new one. If you’ve never worked with an advisor, you can ask yourself if perhaps you need the help of a professional. At the very least, give me a shout. We can weather the storm together.