Success in the stock market does not align well with perfectionism. Conversely, keeping things simple often leads to incredible success and returns.

On May 13th, I stated that the market (S&P 500) was amid a 20% pullback and that it was time to be more aggressive. After my email, the market bounced around and ultimately traded down 25% from all-time highs. Did my opinion change with the market down 25% vs. 20%? Of course not, it was strengthened. 

Let’s keep things as simple as possible. Buying the market down 25% is a rare opportunity. It has only happened nine times since 1942. Did a 25% drop mark the bottom each time? No. Seven of the nine times the market dropped more than 30% before recovering. However, the goal isn’t to buy the bottom. The goal is to make money. 

The question becomes, “If I bought the market down 25%, how long does it take to make a profit?” The answer varies widely, but six out of the nine times you would have been profitable within four months! The dot-com crash took the longest to recover from with a 4.5-year lag before you were even.

Is 4.5 years a long time? I think so. But, that's the worst example in 80 years. I would argue that almost everyone has at least a 4.5-year investment time horizon.

Seven out of nine times a perfectionist would have declared defeat and then would have regretted it within four months. The market down 20%+ is an opportunity, not a reason to be fearful.

As always, I am here for you. I hope you are all enjoying your summer!