This visual conveys a powerful lesson: Smart investors prepare for bad times during good times. It’s easy to feel secure when markets are doing well, when portfolios are growing, and when everything looks stable. But markets don’t move in straight lines. They twist, turn, and occasionally tumble.

The “good times” are not just moments of success—they’re opportunities to prepare. Wise investors know that downturns are inevitable. They use prosperous periods to shore up their plans, and make sure they’re ready for the challenges ahead. This means having a solid financial foundation, sufficient liquidity, and an investment plan that can weather volatility.

Preparing during good times involves managing risk, diversifying, and setting realistic expectations. It’s about not being lulled into complacency by rising markets or feeling invincible because recent returns are high. Instead, it’s a time to revisit your goals, check your risk tolerance, and ensure that your portfolio aligns with your long-term vision.

The red knots in this visual represent the turbulence every investor eventually faces. By preparing now, you’re building the mental and financial stamina to survive those rough patches. You’re less likely to make impulsive decisions, sell in a panic, or abandon your strategy. Instead, you’ll have the confidence to stay the course, knowing you anticipated and planned for these moments.

The key takeaway: Don’t wait for the storm to prepare. Use the calm periods wisely, so when volatility strikes, you’re ready. It’s not about avoiding challenges, but about surviving and even thriving through them. This preparation mindset separates smart investors from those who merely react. Prepare now to succeed later.