Control-the-Controllables Market Response
Move from market fear to rational action by separating facts, noise, and control
- Difficulty
- Easy
- Time to result
- ~days to results
- Steps
- 5
- Confidence
- 91%
When a client is frightened by a falling market, McLean does not begin with a prediction. He connects the client with other market professionals, separates the facts from the surrounding noise, and returns to a scoreboard projected across the client's contract. The core decision rule is to distinguish what cannot be controlled, such as the market's decline, from what can be controlled: spending, decisions, and attitude. The client then talks through the emotional reaction out loud, which McLean says helps move people toward a more rational state. Only after that shift does the plan change. A spending review may reveal room to dial expenses back and invest more over time, turning volatility into a deliberate opportunity rather than triggering an impulsive liquidation.
Origin
Extracted from Masters in Business during Joe McLean's answer about guiding a young professional athlete through a market sell-off.
Core principles
- 01Facts should be separated from noisy newsflow
- 02Market direction is uncontrollable but spending and behaviour are not
- 03Naming emotions helps people return to rational thought
- 04A downturn can create an opportunity to improve controllable choices
How to run it
- 1
Establish the facts
Speak with credible professionals and identify what has actually changed in the market and portfolio. Strip away repetitive or speculative newsflow.
Pro tip Use more than one informed voice so the client is not dependent on a single adviser.
- 2
Return to the full plan
Review the financial scoreboard across the person's entire contract or income horizon. Put the current decline in the context of expected cash flow and goals.
Watch out A short market window can look decisive when detached from the longer plan.
- 3
Separate control from noise
List the factors the person cannot change and the choices they can make now. Focus attention on spending, decision-making, and attitude.
Pro tip Phrase every controllable as a concrete action rather than a market opinion.
- 4
Name the emotion
Invite the person to describe the fear or urgency out loud before acting. Continue the conversation until the emotional state no longer controls the decision.
Watch out Do not mistake an emotionally urgent request for a rational change in goals.
- 5
Choose a controllable adjustment
Decide whether spending should be reduced or whether available cash can be invested over time. Make only changes supported by the plan and facts.
Pro tip Use the downturn to improve behaviour rather than to predict a bottom.
Watch out Impulsive liquidation can lock in the consequences of fear.
In the wild
McLean described a client calling during a market drop. The response is to confirm the facts, revisit the contract-long scoreboard, and acknowledge that market prices cannot be controlled. Spending, decisions, and attitude can be controlled, so the client may dial spending back and invest more gradually rather than sell in panic.
→ The client replaces an uncontrollable market reaction with a rational, plan-aligned action.
Common mistakes
Reacting to the newsflow
Noise can make a market move feel more informative and permanent than the verified facts support.
Acting before naming fear
McLean says talking about emotions helps move a person into a more rational state; skipping that step leaves fear in control.
Is it for you?
Best for
It is best for investors who are reacting emotionally to a market decline or alarming newsflow.
Not ideal for
It is not ideal for genuine emergencies that require immediate liquidity regardless of market conditions.
From the transcript
“what are the things we can control right now? Well, we can control our spending, in our decision making and our attitude”
“the more I can get someone to talk about their emotions, then they moved to a more rational state.”
From the episode
NBA Finals Bonus: MAI Capital's Joe McLean on Being the NBA's 'Money Whisperer'