Buried in the snow, Rhianna Shaw thought about summer and prepared to die...
The 22-year-old English woman had gone to Austria with friends for a ski season. It was supposed to be an exciting adventure.
But for a few days in a row, the weather was too bad for anyone to get on the slopes.
Then, Shaw got a skier's dream...
On her day off, she awoke to clear skies and about 18 inches of fresh snow.
So Shaw and one of her friends headed out on their skis. They met up with some others on snowboards.
After losing several days of skiing, Shaw wanted to make the most of the day. So she suggested going off the trail into an area known for having the freshest powder.
Shaw was an experienced skier. She didn't think twice about taking the detour.
Unfortunately, the area they headed into was known for avalanches. And sure enough, after Shaw and one of the snowboarders collided, she "felt a whoosh of snow."
Their crash triggered an avalanche. And Shaw went rolling almost 500 feet down the hill.
Shaw tried to scream for help. But she was stuck face down under about 3 feet of snow. Her arms were trapped, too. So she couldn't reach her phone to message her friends.
It gets worse...
The group of skiers and snowboarders didn't bring any rescue gear.
Shaw's friends had nicknamed the region "Death Valley." So it's clear that they knew the risk involved in going off the trail. And yet, they focused on the reward – not the risk.
The potential reward of a better experience beat out planning, tools – and common sense.
Stuck in the snow, Shaw tried not to panic. But she knew it would be hard to find her. Avalanches usually cover large areas. And this one was about the size of a soccer field.
Even worse, Shaw knew time was running out fast. As she later wrote in the Guardian...
In our training as ski reps, we had been told that if someone is buried in an avalanche, after about 11 minutes you're looking for a corpse. That was the most traumatic part: there wasn't one thing I could do to save myself.
At that point, Shaw resigned herself to her fate...
I was thinking of the summer I had planned with my sister, and my last thought was, "That's a shame." Then I let go. It was really quite peaceful: I saw a forest either side of me, and I was just walking into it.
But Shaw got lucky...
After about 15 minutes of digging, one of her friends hit the back of her leg. They pulled her out of the snow – and saved her life.
Now, this might just sound like the story of a foolhardy young woman to you...
You Need a Plan
But folks...
We see the same reward-over-risk behavior in investing all the time.
Experienced investors often make foolish mistakes. They chase the potential reward of "fresh powder." And they don't properly prepare for the risk with an exit strategy.
Now, thankfully, bad investments aren't usually life-threatening. But they can lead to low-quality retirements, unfulfilled dreams, and grandkids without money for college.
Since the lows in early April, stocks have been on a tear. They're around all-time highs right now. When markets surge like this, that can lull even experienced investors into complacency.
But the fact is that every day in the markets comes with risk. Unforeseen political events, surprise company announcements, unusual language from the Federal Reserve... you name it.
Navigating this market takes more than just skill. It requires planning ahead.
You need to have the right tools. You need to know what your "emergency beacon" looks like. And you need to know how to avoid the most "avalanche prone" sections of the market.
For me, that's where the Power Gauge comes in.
But no matter what you use... make sure you have a plan in place.
Good investing,
Pete Carmasino
