Do You Act or React?

BY | February 24, 2022

Nobody is unhappier than the perpetual reactor. His center of emotional gravity is not rooted within himself, where it belongs, but in the world outside him. His temperature is always being raised or lowered by the social climate around him, and he is a mere creature at the mercy of these elements.

Praise gives him a feeling of euphoria, which is false, because it does not last and it does not come from self–approval. Criticism depresses him more than it should, because it confirms his own secretly shaken opinion of himself. Snubs hurt him, and the merest suspicion of unpopularity in any quarter rouses him to bitterness.

Serenity cannot be achieved until we become the masters of our own actions and attitudes. To let another determine whether we shall be rude or gracious, elated or depressed, is to relinquish control over our own personalities, which is ultimately all we possess.

The only true possession is self-possession.

Author – Unknown


We must acknowledge that markets are an external situation, one in which we have no control over. Investors who choose to react to markets are giving up control. Successful investors “act” towards markets by developing a game plan, a target allocation designed around their tolerance for risk and financial goals, and they refuse to let short-term events interrupt long-term success.

Napoleon’s definition of a military genius was “the man who can do the average thing when everyone else around him is losing his mind.”

— Morgan Housel

There has never been a shortage of events to create concern and uncertainty over future returns in global financial markets. The irony lies in the fact that these uncertainties are the very reason investors can expect to earn the higher returns stocks offer over time. Volatility and risk are the fee that investors must pay to earn the returns stock markets provide in time.

Act Towards Markets

Part of pursuing a better investment experience begins with focusing on what you can control and acknowledging what you can’t. If the recent volatility continues over the coming weeks, months, or years; it is important to remind ourselves of that simple question: Do I act or react? If we want to stand out from the crowd, we just may want to realize that most of the crowd around us is reacting to the world around them. Achieving serenity as an investor indeed requires us to master our emotions and actions. Remember, the only true possession is self-possession.

Disclaimer: This document may contain forward-looking statements and projections that are based on our current beliefs and assumptions and on information currently available that we believe to be reasonable. All statements that are not historical facts are forward-looking statements, including any statements that relate to future market conditions, results, operations, strategies or other future conditions or developments and any statements regarding objectives, opportunities, positioning or prospects. Forward-looking statements are necessarily based upon speculation, expectations, estimates and assumptions that are inherently unreliable and subject to significant business, economic and competitive uncertainties and contingencies, and prospective investors may not put undue reliance on any of these statements. Forward-looking statements are not a promise or guaranty about future events.

It should not be assumed that recommendations made in the future will be profitable or will equal the performance stated herein. The information provided does not constitute investment advice and is not an offering of or a solicitation to buy or sell any security, product, service or fund, including the fund being advertised.

The statements herein are not intended to be complete or final and are qualified in their entirety by reference to the Investment Management Agreement. In the event that the descriptions or terms described herein are inconsistent with or contrary to the descriptions in or terms of the Investment Management Agreement, the Investment Management Agreement shall control. In making an investment decision, you must rely on your own examination of the Investment Management Agreement.