April 2025
Up until 2020, I don’t think I’d ever combined the words “unprecedented” and “times.” Then, almost overnight, that combination of words became the only way to describe the world. Just consider Google’s search activity around the term:
The good news is, we’re starting to get used to unprecedented times. And that means they’re no longer unprecedented. Which can turn into a small silver lining. Let me explain.
We actually have been here before
OK, so we haven’t ever been on the brink of a global trade war where we’re threatening to tax a major chunk of our imports at more than 100%. And we’ve never had a global economy that’s quite this connected… so it’s nearly impossible to say how bad it could all get. That part is unprecedented.
But we have been through bear markets, crazy volatility, recessions, depressions, and other unprecedented events. And in that sense, this is precedented.
So what’s the playbook for handling things… when there’s no playbook?
1. Focus on your goals.
You’re not saving or building a business to beat the S&P 500, and you’re not investing so your portfolio can outperform the Dow. In particular, consider your end goal (e.g., college for your kids) versus a dollar amount. And keep your timeline in mind!
2. Ignore the headlines.
What the market is doing day-to-day doesn’t matter to you unless you need that money right now. If you do think you’ll need your money sometime soon, that must be accounted for and should be in your financial plan.
3. Change is the only constant.
This is always true, but it’s more relevant than usual with this Administration. Several major, market-moving announcements have been repealed within days of announcement, and things could change on a dime tomorrow. Which is why steps 1 and 2 are so important.
The fear fallacy
This one’s particularly important for my business owners: Now is not the time for fear. Now it the time for purpose.
If you’re scared about what’s ahead for your business, take a moment to define those fears. What are you worried about, specifically?
- Higher prices for supplies?
- Profits that won’t support a higher cost of living?
- Customers who might walk away because they’re afraid?
When you pinpoint your concerns, you can start planning for those fears on purpose. That’s the difference between creating a strategic cash reserve to protect your business, and hoarding cash under the mattress. And it’s a distinction you need to be diligent about for the foreseeable future.
Non business owners are facing a different type of fear. Warren Buffett would call it opportunity. One of his most famous quotes is: “Be fearful when others are greedy, and be greedy when others are fearful.”
In other words, when markets sell off, it means traders are fearful. For contrarian thinkers, that creates a world of opportunity. I’m not suggesting you go on a stock buying spree, but it’s a helpful reminder that our reactions often depend on our perspectives. Which is why it’s so important to stay rooted in our own family goals and timelines: That’s your perspective.
Those talking heads on the news? They’re sharing their perspectives—you don’t need to take those on.
If you’re having a hard time finding perspective amidst all the noise, now is a good time to revisit your family mission statement. (If you haven’t written one yet, there’s no time like 2025.)
Life on purpose: Precedent edition
You may have noticed that I’m really big into doing things on purpose—whether that’s building a business or building a life. So I was thrilled that this month, as I was thinking about what kind of precedent we have for these unprecedented times… I found a remarkable precedent for an artist, determined to live his life on purpose. I actually mentioned him last month as well. I’m talking about Vincent Van Gogh.
Van Gogh struggled throughout his life with finding or defining his purpose. It impacted his art, which was his business, and his life overall.
A few of his big takeaways? You aren’t born with a purpose. You tend to discover it along the way.
To know what you’re going to draw, you must begin drawing.
He also spends quite a bit of time on a theme that’s near and dear to me: The way purpose intersects and weaves together the various elements of our lives, from our family and our creative pursuits to our professions.
Our goals can only be reached through a vehicle of a plan, in which we must fervently believe, and upon which we must vigorously act. There is no other route to success. Your profession is not what brings home your weekly paycheck, your profession is what you’re put here on earth to do, with such passion and such intensity that it becomes spiritual in calling.
And finally… another universal truth I agree with. All of it comes back to love and the people most important to us:
I feel that there is nothing more truly artistic than to love people… Nothing awakens us to the reality of life so much as a true love.
And on that note, I’d like to pivot to a musical note for this month’s closing thought.
Music on purpose
There’s nothing quite like the first single off the new album. Ours is a little bit about perspective, a tiny bit about goals, and it’s definitely about timeframe… but at the end of the day, it all comes back to love.
