Weathering Economic Storms
I remember the most beautiful storm I’ve ever seen. Off in the distance, above the waters, a tumultuous bank of clouds looked ominous. Gray, diffused light shone from behind the clouds, reminding me the moon was still there. Within the clouds, purple lightning flashed so quickly it was impossible to count. The quiet night filled me with awe.
But also some concern. I was on the deck of a 179-foot sailing ship, the Picton Castle. The waves of Lake Michigan, notorious for shipwrecks, were picking up. Although my shift didn’t start for another hour, hurried activity on deck had woken me up. The watch on duty was preparing for bad weather. I had finally given up trying to fall back to sleep and crawled out of my bunk to see what was going on. After climbing the steep stairs to the deck, I saw this breathtaking yet worrying storm.
Life is sometimes unsettling like that storm. Right now, it’s hard to escape the headlines about market drops, tariffs, talk of recession, or even something as simple yet essential as the rising price of eggs. The geopolitical situation in Europe shifts daily. These things matter.
On that ship, I didn’t have any control over the weather. My responsibility was to listen to those more experienced and do exactly as they said which included moving equipment out of the weather and tightening up the lines. These were things we could control, and we took care of them.
The storm never fully hit our ship. We got some warm rain, but it wasn’t bad. We were prepared for a lot worse.
Your financial life is much the same. You can’t predict the future, but you can absolutely prepare. If your financial plan only works when everything goes smoothly, it’s not a good plan. True preparedness anticipates storms.
As I learned aboard the Picton Castle, struggle can sometimes even be a gift—an opportunity in disguise that helps us build resilience and get better. Reflecting back, many of the best opportunities emerge in the midst of challenges, as we’ve explored previously here.
Emotions run high when headlines scream uncertainty. Making emotional decisions about your investments can lead to costly mistakes, as detailed in our previous post, “Top Mistakes Investors Make in Big Market Swings”.
Instead of worrying or turning to the internet for answers, talk your anxieties through with someone experienced. Your financial planner can help you focus on what you can control and steer clear of impulsive reactions.
As we navigate the economic weather of 2025, we believe the best approach is to stay focused on timeless principles. These concepts have helped wise financial stewards regardless of time period or economic cycle, political party or policy.
Resources for Staying Focused
Below are additional resources we’ve written to help you feel equipped and confident during uncertain times. Each of these posts offers practical insights and guidance to navigate economic turbulence:
- How to Make Yourself Recession-Proof: Steps to build resilience against economic downturns.
- Top Mistakes Investors Make in Big Market Swings: Common pitfalls to avoid during volatile markets.
- Would a Recession Be That Bad?: Reframing recessions as opportunities rather than just challenges.
- Is a Downturn Inevitable?: Understanding economic cycles and preparing proactively.
- How to Deal with Financial Worry: Practical strategies for managing financial stress and anxiety.
- Books to Guide You in 2025: Recommended reading to learn from wise thought-leaders and deepen your financial knowledge and resilience.
