What If versus What Is

Amar Pandit , CFA , CFP

October 9, 2020 | 2 Minute Read

We often worry about “What If” this happened. This applies not only to Investing but in every part of Life.

“What if I invest now and the market goes down?” This fear keeps us away from Long Term Investing. It is like our ancestral thinking “What if there is a Tiger outside the Cave?”

In short, What If = Assumption

On the other hand, What Is = Reality

The reality of what happened in the markets now is way different than the Assumptions we made between February and April 2020.

Bill Gates once said “We always overestimate the change that will occur in the next 2 years and underestimate the change that will occur in the next ten. Don’t let yourself be lulled into inaction.”

There will always be the dangerous market going down “what if” that might cause a long-term investor to not invest. A wise investor understands that the stock market going up and down IS simply normal. There will always be reasons to not invest (I will be doing a post on this) but do not let this “what if” lull you into inaction.