Investing & Golf: Strategy, Patience, and the Long Game
As the weather warms, golf fans are preparing for one of sport’s greatest traditions – the Masters Tournament. I had the privilege of attending a practice round last year with my three sons-in-law, and it was an experience I will never forget. While golf may seem far removed from the world of investing, the two share striking similarities that are worth discussing in wake of the recent market volatility and investor sentiment.
Stick to a Plan: Every great round of golf requires a strategy. Each course is unique and presents different challenges to players of all abilities. Likewise, a solid investment plan is essential. This past quarter, there were many threats to continued market advances: tariffs, increased recession fears, global instability, and interest rate uncertainty. Although market volatility can be damaging to portfolios, it is important to remember that declines are normal and expected. Since 1980, the S&P 500 has suffered an average intra-year loss of 14.1%; however, during the same period, the S&P 500 ended the year with gains over 75% of the time. Investors who stayed in the market benefited from the ultimate rally.
The Power of Patience: Golf isn’t won on one hole (although I’ve had two hole-in-ones in my lifetime)—it’s about consistency. Investing requires patience and a long-term mindset. Markets fluctuate, and making impulsive changes to a portfolio can jeopardize long-term gains. Staying invested and trusting the process is key to achieving financial success over time. Since 1926, the average bear market loss was 35% and lasted only 1.2 years. During this same period, the average bull market lasted 6.9 years and had average gains of 340%.
Managing Risks and Hazards: Sand traps, water hazards, and errant shots are inevitable, even for the best players. The key is to stay calm and make smart decisions rather than compounding mistakes. Investing is no different. The best approach is to avoid making emotional decisions when you are stressed due to market volatility. Just as a golfer lays up instead of taking a risky shot over the water, a prudent investor sometimes makes adjustments but never abandons the game.
The Team Matters: Even the best golfers rely on their caddies for advice, perspective, and strategy. In the same way, having a trusted financial advisor can make all the difference. At Bloom Advisors, we are here to help you navigate the fairways and rough patches of the financial world, ensuring you stay on course toward your goals.
Recently, we developed a guide, 25 Ways Bloom Advisors Add Value in 2025, to remind clients of the many ways we can provide support beyond investment management. You will find a copy enclosed in this quarter’s edition of Money Watch.
Thank you for trusting us with your financial future and allowing us to be “your caddy” through your journey.
Ken
