Twenty-five years ago today, most of us remember exactly where we were the morning of September 11^th, 2001, when we heard the news. It's hard to fathom that it's been a quarter of a century since the entire world froze in horror.

What then began on September 12, 2001 is arguably the longest run of fear-based news cycles in modern history — with no end in sight. Think of the headlines we've had to process: anthrax, the lead-up to Iraq and the "weapons of mass destruction," the 2008 financial crisis, European debt, a global pandemic, a megalomaniac in the White House (twice), and meaningless wars that were supposed to end quickly and didn't.

Here's what strikes me most looking back. In September 2001, U.S. equity markets closed for four straight trading days (we closed for two), something that hadn't happened since 1933. When they reopened, the Dow dropped over 7% in a single session, its worst decline in history (at the time). Investors selling in that window locked in large losses. Those who held on, and especially those who kept buying through the fear, did better than fine — if they had the stomach for it. Canadian and US markets have delivered roughly ten-fold returns since, dividends included, across two recessions, a housing collapse, and the list goes on.

I don't say this to be glib about what happened that day, or to reduce it to a portfolio management history lesson. Some things matter far more than the stock market, and that day is one of them. But I do think there's something here worth pausing to consider, twenty-five years later. The headlines have never once run out of reasons to inflame, and thankfully most of us are now far more discerning when it comes to knowing when to ignore (most of) the news.

However, we are humans with a basic fundamental need to feel secure and if we allow ourselves to succumb to the thousands of negative sound bites that are hurled at us each day, then we cannot feel safe.

So today, more than most days, it feels like the right one to say what I’ve been trying to get across for years — go ahead and read the news if you must — but don't let it make your decisions for you. Twenty-five years of evidence says the fear is never going to protect you from anything.

Thanks,

Libby

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