☕️ 3 Smart Moves to Make Immediately If You're Worried

Howdy! 👋 

Like many, I awoke to news that Israel and Iran are at it. 

Airstrikes have apparently killed Hossein Salami, the Commander in Chief of Iran’s Islamic Revolutionary Guard Corps and taken out locations Israel says were related to Iran’s nuclear program as well as its ballistic missile program. Two of Iran’s leading nuclear scientists were also reportedly targeted and killed. (Read) 

Iran retaliated sending something on the order of 100 drones toward Israel. (Read) 

My expectation is that this could get considerably more serious in very short order. 

Very predictably: 

• The Dow is down 600 points as I type 

• Oil prices have spiked 

• The USD has rallied 

• Airlines are diverting flights and the immediate airspace is closed 

World leaders are calling for restraint which makes plenty of sense given the potential for far wider conflict and incredible instability long a part of that region. Even China recognizes the urgency with the ministry of foreign affairs offering to help with de-escalation efforts. 

Soooooo… 

What does this mean for your money? 

That’s a logical question and you’re not alone if you’re wondering. 

First, I constantly urge you to keep things in perspective and this is one of those times when doing so is critically important. 

A sharp selloff like the one we’re seeing is both normal and—believe it or not—exactly what you want to see because it instantly resets risk. Panicked selling shakes out the weak hands often clears the decks for stronger moves ahead.  

My point is that it’s not comfortable, but it is constructive.  

Knee-jerk moves pave the way for smarter money to step in and for more rational pricing to take hold. The pros know it, and now you do too. 

We’ve seen this movie before.  

Think back to the market shock following Russia’s invasion of Ukraine, the U.S. drone strike on Soleimani, or even the Gulf War in the '90s. Each time, markets dropped hard… and then rebounded just as fast once the initial panic passed.  

Fear tends to create spectacular entry points for those who can stay calm long enough to view ‘em in the rear-view mirror while others lose their mojo.  

Again, I know it's not easy, but history shows very clearly that’s where the real money gets made. 

Second, the fact that the markets haven't collapsed is a sign that things are working normally. 

The fall we’re seeing this morning is well within the range of acceptable volatility and order flow. It’s easy to focus on the selling because it’s visceral and loud. 

The real news and what you want to focus on is that every seller has a buyer.  

You've heard me talk about this many times and now, it's time to take that lesson to heart. 

Panic meets discipline, fear meets conviction—and orders are still being matched up.  

Third, yes... things could get worse. 

We’ve got to be real about what’s happening.  

If this conflict remains relatively constrained—regional players only, minimal spillover—there’s a good chance markets will bounce back quickly, just like they have in past geopolitical shocks.  

The real danger lies in a missile hitting the wrong target outside the wrong line on a map or a sympathetic actor taking up the charge from thousands of miles away. That’s when we move from contained to contagion, and the calculus changes fast.

Three things to do right now if you’re worried 

First, take a deep breath and spend a few moments thinking about how you and I can make the world a better place. Prayers if you've got 'em on offer. Good thoughts. 

Investing in optimism - and in this case mentally, deliberately putting yourself in that frame of mind - is the purest path to profits and results. 

I know that sounds trite but human history is filled with countless examples of how we band together at dark moments to make 'em pass.  

Second, now is the time to be sure you've got all the names you want to own in your portfolio. I constantly emphasize "buy the best, ignore the rest" for a reason.  

The selling could accelerate and the last thing you want to do is find out something you own is a POS - and yep, that stands for something I won't say here. 🤦‍♂️ 

Third, get your buy list ready and be sure every stock you own with a dividend is set to reinvest if you can do without the cash.  

Reinvesting is one of the most powerful compounding forces in the investing world—especially when volatility gives you better prices.  

Think about it like "buying on sale" automatically.  

Having your "buy list" prepped ahead of time means you won’t hesitate when opportunity knocks and those around you cower in fear. 

Dividend reinvestment also ensures that every dollar you’ve already got in the game keeps working even when others are sitting on the sidelines. 

Now, I am often asked about "hedging" whenever the you know what hits the fan. 

Most folks misunderstand the concept.  

They think hedging is some kind of magic bullet that protects against losses.  

It’s not.  

Professional investors don’t tend to hedge to avoid losses—they hedge to stay in the game. If they can avoid losses or dampen volatility as well, that's a victory. 

Remember that our goal as investors is longevity and stability, not perfection.  

Proper hedging helps manage risk and, more importantly, keeps your profit potential intact. 

If you're a trader, then get to it immediately. Volatility is your playground—or at least it should be. 

Btw, if you're a member of the One Bar Ahead® Family, now might be a good time to read Your 5 Minute Hedging Guide, which is included as part of your membership and available in the portal. If you're not an OBAer, you can buy a copy separately here if that's of interest. 

Either way, I urge you to take a deep breath. 

Buying great companies is already an implied hedge in and of itself. 

At the end of the day, this stuff is scary - I get it.  

Keeping your wits about you when others are worried about losing theirs isn’t easy. But it IS how we build wealth. 

We don’t move forward by pretending it’s not hard—we move forward because we know it is... and do it anyway. 

Bottom Line 

People think you make your money in bull markets, but the real profits get made when the bears come out to play. 

Remember. 

Missing opportunity is always more expensive than trying to avoid risks you can't control. 

You got this - I promise! 

Let's MAKE it a great day, finish the week strong and do whatever we can to help however we can. 

I will be traveling much of next week so let's plan in being in touch via X (formerly Twitter) and YouTube where I'll post a few thoughts from the road). 

Keith 😀