J. C. Bogle once said that, "if you have trouble imagining a 20% loss in the stock market, you shouldn't be in stocks". Well, I am more or less around that figure in the red, but I am aware, that many investors are way worst off. Unfortunately the share price movement feels at the moment like death by a thousand paper cuts. However feelings can be fickle and betray us. The reality is, that it can get much worst, way better or simply stay around these levels. We simply don't know, yet. Therefore it is important in these moments of uncertainty to look after ourselves and our well-being, so that we make rational investment decisions. We cannot force the hand of the FDA and tell them the hurry up, tell Mesoblast that we want more information or tell some of the serial pests on HC to stop making unsubstantiated claims or be perpetually negative. We can only look after ourselves and our decision making processes, which is probably the most important task of all.
Some of the indicators of mental well being are: Knowing and using our unique character strengths, accurate perception of reality, desire for continued growth, thriving in the face of adversity (emotional resilience), maintaining emotionally healthy relationships, optimism and finally happiness that comes from within rather than being dependent on external conditions (share price rising). People who develop these characteristic have what A. Duckwoth calls, grit. She describes grit as passion and perseverance, a never-give-up attitude. This doesn't mean that you never fail, for failing is an important part of acquiring these skills. Grit means getting back up when you fall.
There are various ways of developing grit. Viewing setbacks and failures as learning opportunities, believing in yourself, surrounding yourself with grit (that's why I am on HC and am thankful to some wonderful posters and at the same time put certain posters on ignore), practicing balanced positive self-talk, learning how to control powerful emotions and practicing optimism, are but a few strategies of developing grit.
The way the share price is going at the moment, it is easy for strong emotions to arise. To develop grit, it is important to manage those emotions, as negative emotions will not help you to develop grit. I have written in some earlier post of how to manage strong emotions. I for myself like to take a step back and look at the situation from a distance. At the moment it is, that share price is at a frustratingly low level and possibly oversold. The delays with the GvHD and the communications around it have been frustratingly slow. The share price is matching the general biotech-sector trend. The trial results of Mesoblast are fantastic and so is the safety profile, even though the endpoints have at times been missed. Stem cells are approved in Japan and there is an increased use of stem cells there. There is a good possibility that at least one product will be approved by the FDA this year. The FDA is going to inspect the Lonza manufacturing side, which if satisfactory will allow the Covid/ARDS and CLBP trials to proceed. When view my investment like this, it helps me to control my emotions and at the same time I view my investment with hope and optimism.
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