Podcast Episode 283: Stock Market Shenanigans
In times like these when the stock market is tumbling over an extended period of time, we often get calls and questions from people about what they’re most concerned about. It’s natural to be worried or fearful when account values are dropping, but that’s a time when you can lean on your advisor. Let’s talk about the guidance we provide during volatile markets and what you should be paying the most attention to moving forward.
Before we get started with this conversation, we want to remind people that it’s never an inconvenience to us when someone calls with a question or concern. Sometimes we have clients that feel like they’re bothering us when they get in touch but it’s not that way at all. We’re here to make sure you have the answers you need when you need them.
Now with that being said, down markets bring out plenty of questions because fear is a great motivator. People need reassurance in these moments. When we get asked about what’s happening and when things are turning around, the first thing we make sure of is that you have a plan. You need to have a process for investing over the years so that you don’t feel the need to pay close attention to the daily movement in the market. While we all believe things will eventually correct, no one can tell you when we’ve reached the bottom.
So what investment strategies do we like to consider during these volatile environments? For starters, we like to remind people that just because something used to be worth a lot doesn’t mean it’s going to return to that value again. There are plenty of examples of stocks that were once valued at a number much higher than you’ll find it today. So you can’t just assume that every one of your investments will bounce back completely.
The other thing we encourage people to do is take a hard look at what they’re invested in. When your safe stuff is down, it should be a sign that you should probably reconsider other options. Not only are they not as safe as you believed, but those investments don’t have the upside when things do begin to run again.
And most people forget that you don’t have to pick between two extremes when it comes to investing. A lot of folks just assume I need to be ultra-conservative or I should be very aggressive with my money, but you should have your money in different buckets to account for the ups-and-downs that we know are coming.
The stock market shenanigans impact us all, but it’s harder for those in retirement or close to it. Most of the people we typically work with are either done saving money or pretty close so seeing your account lose value can be worrisome. For years, all you’ve had to worry about was putting money into your retirement account and forgetting about it but now that’s about to change. Soon you’ll have to be taking withdrawals whether you need to or not so your plan has to accommodate for that.
That’s why we encourage everyone to sit down and review their portfolio and really go through each investment so that they can position themselves to take advantage of the eventual turnaround. The best place to start is our Money Map Retirement Review, and you can get a complimentary just by reaching out to us.
Here’s what we discuss in this episode:
0:42 – The questions and concerns we’re hearing right now
3:57 – What investments strategies can you use in these markets?
7:25 – Why do look at the mark in two extremes?
9:11 – Mailbag question on where to pull money from to invest
13:31 – The Money Map Retirement Review
Check out our other free financial resources here: https://johnsonbrunetti.com/financial-resources/
Contact our team: https://johnsonbrunetti.com/contact-us/
