In mythology, Sisyphus is forced to push a giant boulder up a hill for an eternity where every time he gets close to the top, it rolls back down.
Investing can be thought of the same: as markets rise we feel powerful... then a crash happens where everything is sent sliding, and we feel hopeless.
Market drops are inevitable, and it is normal that months of progress can vanish in weeks. It feels pointless to keep trying, but this is the nature of market cycles; it is not a sign that we are doing something wrong.
Many investors hope for the moment that they can say:
“I am done. My portfolio is set forever.”
But the markets do not allow that, as there is no end to the process of maintenance, and discipline. Accepting that markets move in cycles, drawdowns return, rebalancing never ends, and discipline beats prediction, is very important.
Long term investors who accept the repetitive nature of the markets outperform those chasing the shortcuts. Everyone’s rock rolls back eventually, but the question is whether we keep pushing...