Unruly markets and jarring headlines can mess with your desire to be comfortable in your daily life.
Comfort feels safe. It feels smart. It feels like control.
But in investing, your comfort often comes with a price tag…and it can be a very high one.
It’s one of the great paradoxes of markets:
The things that make you feel safe in the moment can quietly destroy your long-term wealth.
And the things that make you uncomfortable — volatility, uncertainty, temporary losses — are often the very conditions that help build your future returns.
According to Dalbar’s Quantitative Analysis of Investor Behavior, the average stock fund investor earned just 6.2% a year over the past 20 years, while the S&P 500 returned about 9.7% over the same period.
That gap — roughly 3½ percentage points every year — isn’t due to bad funds; it’s due to bad timing by investors. Those investors left the market when they felt anxious and came back when it felt comfortable.
That “comfort gap” costs real money — as much as hundreds of thousands of dollars over a lifetime.
Morningstar refers to this as the “behavior gap.” You underperform your own investments because you’re trying to dodge discomfort. And in doing so, you can miss the very moments that make markets grow.
Since 1990, if you missed just the 10 best days in the S&P 500, your total return was cut by more than half — and, statistically, those best days nearly always came right after the worst ones.
Think back to March 2020, with the markets in free-fall and the world shutting down.
Then, comfort meant sitting in cash.
And from that low, the S&P 500 doubled in less than two years.
Or in 2009, when, after the financial crisis, pessimism was everywhere.
Comfort was avoiding those near-term risks.
But the investors who stayed disciplined and stayed with their strategy experienced one of the longest bull markets in history.
Behavioral finance defines this comfort-seeking as loss aversion, with the pain of a loss feeling about twice as powerful as the pleasure of a gain. Humans are funny like that.
As a result, we pay a premium for comfort with too much cash, too many short-term bonds, or guarantees that barely keep up with inflation.
But safety isn’t free.
The price of comfort is your loss of opportunity, the quiet erosion of your purchasing power and the missed compounding that builds real wealth over time.
Since 1926, when we’ve had good records, the S&P 500’s average annual return has been about 10%. But, along the way, it’s suffered an average decline of 14% during each of those years – regardless of how the market ultimately ended the year. That’s just one cost of earning long-term returns.
Bottom line - you can’t have growth without some discomfort.
Even in 2022, when both stocks and bonds cratered, those who stayed invested saw double-digit rebounds the following year. History rewards your discipline — not comfort.
So, the next time the market feels a little rough, ask yourself three questions:
- Am I reacting to headlines or to my plan?
Headlines change daily; your goals shouldn’t. - Am I paying for comfort with my future growth?
Sitting out may feel smart today, but can be quite costly tomorrow. - What does my discomfort tell me?
Often, it’s a signal that you’re invested — that your money’s working, not hiding.
Discomfort is the toll you pay for your long-term investing success.
And it’s worth every penny. Periods of discomfort — those uneasy stretches when headlines are bad and volatility is high — are when long-term investors quietly earn their advantage.
Having the discipline to stay invested, rebalance, and stick to a plan isn’t exciting, but it’s the difference between watching your wealth grow and watching it slip away.
Comfort feels good because it gives the illusion of control. But markets don’t reward emotion; they often penalize it. Markets reward participation and patience. The lesson: the market doesn’t send invitations. Comfort often arrives only after the opportunity has passed.
Think of the investor who shifted to cash during the recent pullback and is still waiting for “clarity.” The market didn’t wait. It climbed the wall of worry, leaving that investor behind.
Over time, the “safest” choice can quietly become the most expensive — not through loss of principal, but through loss of opportunity. Inflation keeps working even when fear keeps you on the sidelines.
The Pattern Through Time
Every cycle tells the same story.
In the 1970s, investors fled stocks during stagflation — only to miss one of the greatest bull markets in history.
In 2008, fear of another Depression kept trillions in cash as the recovery began.
And after the 2020 drop, investors who waited for “certainty” watched the market rebound without them.
Your Takeaway
Real investing isn’t about finding comfort — it’s about building confidence.
Comfort depends on conditions. Confidence depends on preparation.
When you know your strategy, your time horizon, and your risk limits, you don’t need to react to every headline. You’ve already planned for the bumps in the road.
So, the next time markets feel uncomfortable, remember: discomfort is your entry fee for your long-term growth. Avoiding it may feel safe — but that safety carries a price.
You can’t control markets, but you can control your reactions to them. And that’s where lasting success begins — not in chasing comfort or certainty, but in maintaining your clarity and discipline when others lose theirs.
As always, please let me know if you have questions or comments.
All my best –
Michael J. Maehl, BFA™
Senior Vice President
Retirement Income Specialist
509.944.1790
14 East Mission, Suite 4
Spokane, WA 99202
Email: m.maehl@opus111group.com
Website: www.opus111group.com
This commentary contains forward-looking statements. The economic forecasts set forth in this commentary may not develop as predicted. Investing involves risk, including the potential loss of principal. Past performance is no guarantee of future results.
Michael Maehl uses the trade name/DBA, Opus 111 Group. All securities & advisory services are offered through Commonwealth Financial Network©, Member FINRA/SIPC, a Registered Investment Adviser. Fixed insurance products and services are separate from and not offered through Commonwealth Financial Network.
Even in 2022, when both stocks and bonds cratered, those who stayed invested saw double-digit rebounds the following year. History rewards your discipline — not comfort.
So, the next time the market feels a little rough, ask yourself three questions:
- Am I reacting to headlines or to my plan?
Headlines change daily; your goals shouldn’t. - Am I paying for comfort with my future growth?
Sitting out may feel smart today, but can be quite costly tomorrow. - What does my discomfort tell me?
Often, it’s a signal that you’re invested — that your money’s working, not hiding.
Discomfort is the toll you pay for your long-term investing success.
And it’s worth every penny. Periods of discomfort — those uneasy stretches when headlines are bad and volatility is high — are when long-term investors quietly earn their advantage.
Having the discipline to stay invested, rebalance, and stick to a plan isn’t exciting, but it’s the difference between watching your wealth grow and watching it slip away.
Comfort feels good because it gives the illusion of control. But markets don’t reward emotion; they often penalize it. Markets reward participation and patience. The lesson: the market doesn’t send invitations. Comfort often arrives only after the opportunity has passed.
Think of the investor who shifted to cash during the recent pullback and is still waiting for “clarity.” The market didn’t wait. It climbed the wall of worry, leaving that investor behind.
Over time, the “safest” choice can quietly become the most expensive — not through loss of principal, but through loss of opportunity. Inflation keeps working even when fear keeps you on the sidelines.
The Pattern Through Time
Every cycle tells the same story.
In the 1970s, investors fled stocks during stagflation — only to miss one of the greatest bull markets in history.
In 2008, fear of another Depression kept trillions in cash as the recovery began.
And after the 2020 drop, investors who waited for “certainty” watched the market rebound without them.
Your Takeaway
Real investing isn’t about finding comfort — it’s about building confidence.
Comfort depends on conditions. Confidence depends on preparation.
When you know your strategy, your time horizon, and your risk limits, you don’t need to react to every headline. You’ve already planned for the bumps in the road.
So, the next time markets feel uncomfortable, remember: discomfort is your entry fee for your long-term growth. Avoiding it may feel safe — but that safety carries a price.
You can’t control markets, but you can control your reactions to them. And that’s where lasting success begins — not in chasing comfort or certainty, but in maintaining your clarity and discipline when others lose theirs.
As always, please let me know if you have questions or comments.
All my best –
Mike
Michael J. Maehl, BFA™
Senior Vice President
Retirement Income Specialist
509.944.1790
14 East Mission, Suite 4
Spokane, WA 99202
Email: m.maehl@opus111group.com
Website: www.opus111group.com
This commentary contains forward-looking statements. The economic forecasts set forth in this commentary may not develop as predicted. Investing involves risk, including the potential loss of principal. Past performance is no guarantee of future results.
Michael Maehl uses the trade name/DBA, Opus 111 Group. All securities & advisory services are offered through Commonwealth Financial Network©, Member FINRA/SIPC, a Registered Investment Adviser. Fixed insurance products and services are separate from and not offered through Commonwealth Financial Network.