Markets are full of surprises. One day it’s smooth sailing, the next there’s a headline that shakes everything up. While we can’t control the events that unfold, we can control how we respond. And that response often determines the outcome.
A recent article from Dimensional Fund Advisors highlighted a simple but powerful formula:
E + R = O
Event + Response = Outcome
Think of it like professional sports. Even the best athletes face bad calls, missed chances, or unexpected setbacks. They might show frustration in the moment—but the great ones quickly reset, stay focused, and make the next play count. They don’t let one moment define the outcome.
Let’s say markets drop suddenly due to unexpected news. One investor panics and sells, then struggles with when, or whether they should get back in. The outcome? A missed recovery and long-term regret. Another stays calm, leans on a long-term perspective, and sticks with the plan. The outcome? A better chance at long-term growth and peace of mind.
This is why having a clear investment strategy matters. And it’s why the right advisor can make such a difference by offering guidance, perspective, and steadiness when the game gets tough.
As the great John Wooden once said, “Things turn out best for the people who make the best of the way things turn out.” That’s true on the court—and in your financial life.