"Nothing in the world can take the place of persistence. Talent will not; nothing is more common than unsuccessful men with talent. Genius will not; unrewarded genius is almost a proverb. Education will not; the world is full of educated derelicts. Persistence and determination alone are omnipotent."
-Calvin Coolidge
Last year around this time, most reporters used "the R word" to describe the country's economic situation. Now, we all go ahead and say "recession", because we can all agree that we are, in fact, in a recession. What does this imply for your lifestyle and savings? Across the board we see 401k plans, other investments, and the DOW taking big hits, sometimes half of what they used to be at the high points.
Our situation reminds me of a parable called "Shake it Off and Step Up":
A farmer owned a mule that fell into a well. After assessing the situation, the farmer reluctantly concluded that neither the mule nor the well was worth saving. Instead, he called his neighbors together and enlisted them to help bury the old mule in the well and put him out of his misery.
Initially, the old mule was frantic, but as the dirt kept hitting his back, something happened. It dawned on the mule that every time a shovel load landed on his back, he should SHAKE IT OFF AND STEP UP! This he did, blow after blow. Shake it of and step up... shake it off and step up. No matter how painful the blows or how distressing the situation, the old mule fought panic and just kept right on SHAKING IT OFF AND STEPPING UP! Before long, the old mule, battered and exhausted, stepped triumphantly through the mouth of that well. What seemed like it would bury him, actually helped him... all because of how he handled adversity.
Such is the economy, such is life. As I calm down and look at the facts, downturns in the economy come and go quite frequently, roughly every 5 to 7 years. Ever since we started keeping track, the bounce back after a recession elevates stocks higher than they were before. According to those same results, the investors that stuck it out and avoided selling in the low times made some ROI that matched the recovery. That persistence of waiting out the hard times produced some great returns in the end.
Now, I do not write this as investment advice. I do, however, want you to think about the economy as you think about life. How are you responding to challenges, are you selling at a low price when the outlook is grim or are you sticking it out for better times? Share your story as a comment below, and let's hear about persistence in challenging times.