Portfolios & Mental Health

If anything has been important since mid-February 2020 it has been being mentally strong and resilient – or having friends and family who are mentally strong to lean on. Believe it or not, this has nearly always been the case with investing.


A recent article in The Wall Street Journal alluded to the concepts of mental strength, resilience – and process – amidst the coronavirus.

achievement confident free freedom
Investing is a long-term process and TRUST in your adviser is paramount – and something for which to be grateful.

The topic of the article was GratitudePlease stay with me here! Apparently, over the past several decades research has established gratitude as a powerful way to boost the immune system. Without getting too deep in the medical terminology, the physiological immune system “is like a cellphone battery…and it is important to recharge it.”

  • Gratitude has proven to be an established way to recharge the immune system. Even more important, gratitude involves process. Here is where the comparison to portfolios and investing comes in.
  • The “Gratitude Process” involves:
  • Acknowledging the facts of what we can control,
  • Challenging negative thoughts and not letting negative thoughts completely take over,
  • Reframing these thoughts to something more positive and helpful,
  • Breathing (!!)
  • Paying attention to the present moment,
  • Stating specifically what we are glad we have in the present.

The research also says that keeping a written journal of things in our life for which we are grateful each day is a good start AND that “people who practice being grateful report …higher levels of well-being”*.

The process can be equated to portfolios and personal finance:

  • Acknowledge facts we can control = Have a PLAN & an Asset Allocation.
  • Stick to a well-laid out plan even when the market challenges short-term performance (as it has),
  • Have an Adviser who asks tough questions and checks in to reinforce the positive and well-thought out factors in the portfolio amidst volatile and down markets,
  • Breathing is still recommended,
  • Reaffirm often with your adviser the overall plan and progress toward your goals,
  • Pay attention to the present moment while knowing it is necessary that you and your adviser also consider the long-term,
  • Recognize that investing is a long-term process and TRUST in your adviser is paramount – and something for which to be grateful.

At the same time, I am grateful for the trust my clients and friends place in me to provide financial advice and guidance. These concepts cannot be forgotten in the midst of a global pandemic and market turmoil.

A reliable portfolio process can be VERY mentally rewarding in the present – and lead to accomplishment of personal financial goals in the short-, intermediate- and long-term. Please stay in touch during these times and always.

*Please ask me to share the WSJ article.


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