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I long ago decided that horseback riding was not going to become a meaningful part of my life. Nonetheless there are others in my life that aren’t yet as ruthless about how they decide to spend their time or treat their tailbone. If I’m honest, I’m afraid of horses and suspect that horses can smell my fear. Horses are unpredictable – what if something spooks the horse and it goes berserk? What do I do to stop myself from crashing and breaking my neck. These are questions that get the heart pounding as I wait to rustle some cattle and Alexa chuckles thinking I look more like Mike Myers in an old Saturday Night Live sketch than a working gaucho.
Gaucho Mario gives me advice:
- Whatever you do don’t panic, you’ll just make things worse
- You know your limitations better than anyone – don’t step outside them
- Remember what you’ve been taught
- Yell for help
And I guess I’m as prepared as I can be.
It strikes me that when it comes to investing Mario’s advice is much wiser than that of the market pundits currently writing articles about impending market sell-offs. Is the market going to crash? Are stock market valuations too high? Are interest rates or inflation going to spike? Is the housing bubble going to burst? Don’t listen to those who claim they can predict the future. Markets are unpredictable. While it’s unlikely you’ll break your neck if markets crash you can ride easier if you’re prepared – the Chalten spin on advice from a gaucho:
- Whatever you do don’t panic, you’ll just make things worse – develop a disciplined investment strategy and stick to it
- You know your limitations better than anyone – take time to understand your appetite and tolerance for risk
- Yell for help – you might be your own worst enemy if a market correction does happen
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