Is Now the Time to Make Sure You Aren’t Out Over Your Skis?
I recently went water skiing for the first time, and it was an unforgettable experience. I’ll admit, though, I spent much of the afternoon with my skis pointed toward the sky (not exactly where you want to be!). My biggest challenge was simply getting up out of the water.
As I quickly learned, many beginners make the same mistake I did. Every time the boat started moving, I would rise just a little and then instinctively pull my arms back on the rope, which led to a wipeout almost immediately.
Fortunately, several seasoned skiers were on the boat and offered great advice: “Lock your arms,” “don’t pull back,” and “let the boat do the work.” This was easy enough in theory, but in practice, my instincts kept winning. After a few less-than-graceful wipeouts and plenty of lake water swallowed, I finally managed to stay upright. It only took about 15 tries, but when it clicked, it was worth every attempt.
Do you know what happened when I finally managed to stand up on my skis? I coasted along the water, grinned at my cheering section on the boat, and then realized I had no idea what to do next. I was finally where I wanted to be, but since I didn’t know the next step, I crashed back into the lake.
Overall, it was a great day. There was a lot of laughing and cheering, and eventually I learned to cruise for a few seconds and actually enjoy the ride. I wasn’t even too sore the next morning, and the whole experience left me excited to try again.
Investing Lessons From Water Skiing
As I bobbed in the water waiting for the boat to circle back, I couldn’t help but think about how much water skiing reminds me of investing:
Instincts can get in the way. Just like pulling back on the rope, reacting to short-term market fluctuations can throw you off balance.
Patience pays off. Giving up too soon means never getting to enjoy the ride, just like selling investments too early.
Having a plan matters. Following guidance and maintaining discipline helps you stay upright, whether on skis or in your portfolio.
Managing Risk and Comfort
Every individual responds differently:
Some can see potential losses on paper and remain calm, knowing markets historically rebound over time.
Others find uncertainty stressful or unacceptable and need safeguards.
Practical tip: Keep a portion of your portfolio in cash-like assets—savings, CDs, money markets, or certain bonds—so you don’t have to sell growth assets at the wrong time.
Be Proactive
Now is the best time to have conversations about your portfolio. Being proactive, rather than reactive, helps align your investments with your goals and gives you confidence for the long term. The ride isn’t always smooth, but with the right guidance and discipline, you can enjoy the journey.
This commentary reflects the personal opinions, viewpoints, and analyses of The Dala Group, LLC employees providing such comments. It should not be regarded as a description of advisory services provided by The Dala Group, LLC or performance returns of any The Dala Group, LLC client. The views reflected in the commentary are subject to change at any time without notice. Nothing in this commentary constitutes investment advice, performance data, or any recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. The Dala Group, LLC manages its clients’ accounts using various investment techniques and strategies, which are not necessarily discussed in the commentary. Investments in securities involve the risk of loss. Past performance is no guarantee of future results.