Making The Best Out Of Adverse Situations
“Everyone has a plan until they get punched in the face.”
That quote was once made by Mike Tyson during his professional boxing career.
What did Tyson mean? Simply put when many of his opponents faced adversity they abandoned what they were going to do and often folded under pressure.
In the opening ten seconds of his 1996 heavyweight title defense against Evander Holyfield Tyson connected with a ferocious shot on the chin of Holyfield. That punch would have folded many of Tyson’s previous opponents.
Holyfield was indeed stung by the shot but smiled back at Tyson and pressed forward. Not an ideal start for Holyfield he but didn’t panic with what was in front of him and though things didn’t always go his way in the fight he stuck with his game plan throughout the night. Ultimately Holyfield would take over the bout and stop Tyson in the 11th round.
Many times in order to succeed we must face adverse situations that at the time seems less than ideal but in the end teaches us something invaluable that otherwise if we had not faced may not have come out on the winning side.
Obviously what happened in the markets in the last year was less than ideal for many of us. Sometimes though these adverse situations help teach us invaluable lessons that can help us better manage our finances going forward.
Going back to the analogy above Holyfield had often found himself in adverse situations in the ring before he faced Tyson in 1996. Did things always go Holyfield’s way? No they didn’t and he had some bad nights in the ring. But facing adversity made Holyfield better as a fighter and helped him push through some tough moments against Tyson. Holyfield’s performance that night was career defining and cemented his Hall of Fame status (and not to mention set up several big future paydays).
Do you remember getting punched in the face in the markets in 2008-2009? Many people sold out of the market at or near the lows only to return after things seemed “safe.” But in doing so had already missed most of the big returns from the bounce back.
There were also those that stuck with their plan and didn’t panic in 2008-2009. They were rewarded. And that experience helped many navigate another tough scenario for the markets when the Covid outbreak occurred in 2020. For many if they had not experienced the 2008-2009 downturn they may have panicked sold in 2020 and missed the quick ascension resulting in a negative impact on their finances.
And what about those who panicked during the recent downturn and made some changes they may be second guessing at the moment? Guess what it is still not too late to change that course and may in fact be the perfect time to consult with a financial advisor.