Boy, oh boy, as I’m writing this, the Patriots are having a historically bad season, the likes of which we, as fans, have not seen in over 20 years. Talking heads, sports journalists, and fans are all trying to find patterns/people to blame and evaluate the best way to take the next steps. It struck me that the current New England Patriots situation is a great example of how panic and a total loss of direction can occur when the unexpected happens. It’s not too dissimilar from the shock we see when bull and bear markets flip-flop after years of domination.
Bull and Bear Markets – The Stages of Grief
The once-unstoppable NFL powerhouse faces an unexpected 2-8 record for the first time in over 20 years. Their slump and the unpredictable nature of financial markets have become strikingly evident to me.
As a working Boston financial planner for decades, I’ve witnessed a pattern that occurs with people and businesses when financial fears become a reality. The reaction to these unforeseen financial hurdles is similar to how one processes grief: the five stages – denial, anger, bargaining, depression, and eventually, acceptance.
If we look at the Patriots’ current situation, I feel the fanbase and organization are between anger and bargaining. We’re past the denial that this season may turn itself around, and now, there’s anger being cast at different parties–bargaining/rationalization comes in; this isn’t dissimilar to when a once high-flying stock begins to stumble, investor confidence wanes, and economic indicators signal caution as the ship begins to rock back and forth.
“It’s Bill’s fault; he’s chasing Shula’s record, and his ego/pride has become too much!”
“It’s Kraft’s fault! They won’t spend, and Bill is taking one for the team!”
“It’s Mac Jones’ fault! He’s not a confident leader!”
“It’s the offensive lines’ fault! They’re awful; Mac has no protection!”
Oh yes, these “hot takes” sound like they’re from a bar near Wall Street after the closing bell has rung, and all the brokers are looking for an outlet to blame. I’ll say this: as difficult as market (and team) fluctuations are, there’s always an opportunity to be had.
Adversity Always Breeds Opportunity
There are many historical examples to look back upon and feel hope for the market’s outlook. Think back at the tech bubble surrounding Y2K. It was chaotic, with companies like AOL falling by the wayside. Yet, amid that turmoil, companies like Apple and Microsoft came from the ashes and grew stronger than anyone could have imagined. They reoriented their strategies, seized the opportunities presented by the bear market, and transformed them into the successes they are today. Similarly, while Lehman Brothers collapsed during the financial crisis, companies like Amazon and Tesla began their journey toward domination. These companies didn’t just survive the bear market – they thrived in it, leveraging the opportunities around them.
*Any company names noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their products or services.
While this Pats season is dismal, there are positive opportunities to seize. One silver lining could be a top pick in the draft, a generational quarterback, maybe even the next Brady. That could be a bit much, but you never know!
Bull and Bear Markets – The Game Plan Behind the Game Plan
Transition is always hard. Whether moving on from a 20-year veteran quarterback or an unprecedented bull market, accepting change and maneuvering is tough. But change is inevitable; it’s the only guarantee in life, so being prepared for change can make the transition more comfortable.
Any successful family financial planner will tell you that you can’t build generational wealth without accounting for bumps along the way; you don’t measure success in weeks but in years and decades. Developing a 30+ year game plan for financial goals will help ease the trauma when sudden/unexpected change happens, and adversity can even yield opportunities.
We’ve undoubtedly had a good run (as Pats fans), but accepting change and understanding the best path forward is a chance to reclaim greatness. I guarantee you Bob Kraft has had a foundational plan for owning/running his team, accounting for all variables and contingencies, and in the long run, they’ll be fine. Just as the markets will have ebbs and flows, ups and downs, good years and bad years, coming out fine or better on the other side is all about having a game plan that can adapt and change with whatever the circumstances are.
If you’d like to discuss how you can game plan for your financial future and goals or just talk Patriots, I’d be happy to have a call.
