Calm water makes a lifeboat drill much easier. We aren’t fighting the waves or the fear we feel during an emergency. Still, if the worst happens, and the drill becomes reality, at least we’ve rehearsed. We’ll know exactly what we are supposed do.
With the markets relatively calm, now is the perfect time for an investor lifeboat drill. But to get the most out of this drill we need to remember how we felt seven years ago when the markets were getting scary.
Remember the days when even smart, reputable people shouted gloom and doom from the rooftops? If not (or if you’ve blocked it out), let me give you the abridged version: It was terrifying.
Read the rest of the article on The New York Times.