INSIGHTS
Crushed It, Now Get Some Rest
Tired? According to a recent Gallup News report, a majority of U.S. adults, 57%, say they would feel better if they got more sleep, up 14% from a decade ago. Sure, we all work hard, but increasingly weren’t getting the rest needed to truly restore ourselves.
Working hard isn’t the issue. It’s just that we keep pushing onward without a break.
While it is vital that humans recharge, financial markets cycle and need to regain their momentum, as well. Stock prices may exceed their value for weeks or even months, but eventually there is a point of exhaustion, and prices pull-back. We may have ample warning that a pull-back is near, but sometimes a Fed speech or a surprising economic report turns the market on a dime.
We often hear that past performance is no guarantee of future returns. Yet, people are hard-wired to recognize patterns. We tend to believe what has happened in our recent past is what will happen in the future. And so we keep on. This is called “recency bias,” and this bias can work to our detriment.
If we embrace the ability to work hard, then rest (versus work hard continually until we crash), we can do wonders for our health and well-being. Similarly, healthy markets will also have a time of low or no growth after big surges. So, do yourselves a kind favor and think deeply about how you can recalibrate to rejuvenate. It’s okay to take a little off the table, so you can gain even more in the future (just like the markets do).
Karalyn Carlton