The criteria to evaluate reopening schools and the economy could have been drafted when the decision to close the schools was made. This criteria could have included something like total hospital capacity, or COVID-19 deaths as a share of hospitalizations.
There may be someone behind the scenes, operating precisely this way. However the information released by local, state and national officials as been less consistent. The inconsistency on the policy is fueling some of the distrust and fear surrounding COVID-19.
Far be it from me to make policy recommendations to well trained physicians and health care workers; however I have a fair amount of experience in decisions during in turbulent times.
The criteria to sell an investment is best drafted when the investment is purchased. There will always be reasons to sell your particular investment, however the criteria with the most meaningful impact to your bottom line is likely the same reasoning used to make the original investment.
Why not write your buy and sell criteria at the time the purchase is made?
Like newlyweds writing love notes about their spouse to their future selves, turbulent times may call for a reminder of the vows made at the altar. Stressful moments in the house are not the time to create new criteria; but to remember how we got to where we are.
You are not married to your investments, and yet, like your wedding vows, your investments serve a specific purpose. The purpose may have been to replace current income, or substantially appreciate in value, either of which has an known benchmark to help evaluate the investment.
This type of written plan helps fight against reactionary performance decisions, or unforced errors. This statement can become a lens to evaluate changes in market uncertainty or family care demands. It’s not that the original policy is static, it is a filter to make wise decisions in a constantly changing world.
Without a clear return to work policy, we’re left wondering, how safe is safe enough? A paralysis of decision is no way to run an economy or a household’s investment portfolio.
Let’s connect today to add a written buy and sell strategy to your financial plan before the next market change.