Remember the last time there was a financial crisis? Well there have been many in the last few decades. The Asian crisis in 1998, There was 2007 then 2008. There was Lehman Brothers, Northern rock and the queues around the block to withdraw money from a feared collapse of one bank and then many others. Some thought we were hours from doom. If you were to visit Greece a few years ago you would have felt money was all around you, now it seems to have seeped away.
Often when we are in a crisis, we forget that we have managed to survive at other points in our lives. At present there is the fear of the contagion of the Greek crisis in Europe and the world. The….What if? What if? Questions seem to go on in the newspapers and the financial markets. What if questions are anxiety filled. So much is driven by emotions, even the very markets which are meant to be about logic seems to be foaming at the mouth with fear at the moment. At these times it is best to stay still, stay tight and not make any rash decisions.
Brokers make money whether you buy or sell. The market makes money regardless. Whenever there is a time of difficulty stress brings within us a response of fight, flight or freeze. I always advise clients to use the ‘freeze’ of the stress response at first, until their mind can engage more logically. This advice would apply not only with Greece and what is going on now but would apply in other areas of out lives. At the moment it is very easy to catastrophise and imagine the worst thing (whatever that may be to each individual). Catastrophisation is easy when many others are moving along like emotional lemmings near the edge of a cliff. Meanwhile, the skill is to engage our minds and bodies in alternative activities to help us relax and be able to make a more calm and reasoned decision. We will still have to make a decision – as everyone else has to do so. Long-term success is about how we deal with whatever is put in front of us. It is about due diligence, follow through, perseverance and keeping our heads above water until our bodies are able to walk onto land. Has the Greek Wedding turned into a Funeral? We really do not know…but it is too early to dress in black when the casket is empty.