Economic News - Changing Times

S&P Officially Enters Bear Market, but let’s maintain a gratitude attitude

What’s a Bear Market?

Bear markets are part of normal market trends and are a sign of stocks going down in value for an extended period of time. Since 1928, the S&P 500 has experienced 26 bear markets. The market declines 20% or more over at least a two-month period of time. However, there have also been 27 bull markets—and stocks have risen significantly over the long term. ¹

"I don’t know of any investor who enjoys a bear market unless they look at a glass half full. Just follow me a moment", says Kathy Williams CEO and President of Advance Financial Lighthouse.

Optimists will usually say the glass is half-full, whereas pessimists will usually point out that it's half-empty. Optimists tend to focus on the good. There is still water available to drink.

Bear markets can be great buying opportunities while prices are down or on sale. Try to keep this in mind. Buying delicious positions you normally wouldn’t buy because the cost is too expensive or you don’t have enough money to buy. But the game of economics allows us to still find opportunities if we are willing to wait until the Bull market returns. For every bear market that we have, a bull market usually follows.

As long as you continue to have gratitude, you are worthy of the best of what life has to offer. Instead of thinking about market declines and their effect on your accounts, a better response is to have an attitude of gratitude for all your blessings and what you have and believe more will come. It is essential for your peace of mind. In fact, it is precisely under crisis conditions when we have the most to gain by a grateful perspective on life. Gratitude has the power to energize and bring hope. In the face of brokenness, gratitude has the power to heal. In the face of despair, gratitude has the power to bring peace of mind.

So yes our accounts are down and they look messy as you are perhaps purchasing great new investment opportunities, rebalancing or dollar cost averaging with systematic investing in personal brokerage or employer retirement accounts. But think of your wonderful blessings and all the people you have in your life who show you love. It is then you will close up your investment statements and rely upon the trust and confidence of your Financial Professional who is providing you with ongoing communication and letting you know - here we go again.

¹ Historical Stocks Bonds and Bills - https://lnkd.in/gnM-w9RJ

Is a Recession Imminent?

Recessions can feel like a financial whirlwind, and the best way to prepare is a solid financial strategy. One of the hardest parts of a recession is the market panics, volatility, and emotional highs and lows that can occur.

When you hit one of these low points, we want you to keep these three things in mind:

One: Avoid knee-jerk reactions. Watching the stock market and the value of your investments rollercoaster can test the patience of even the most disciplined investor. But avoiding emotional reactions is absolutely critical to protect your long-term goals.

Two: Revisit your risk tolerance and portfolio. If the recent volatility has you uneasy, reconsider how much risk you’re willing to accept in exchange for potential growth in your portfolio. If your risk appetite has decreased because your life’s priorities have changed, we can help you revisit your strategy.

Three: Reach out for advice and reassurance. It may be tempting to cash out and stay on the sidelines. But that’s almost ensuring losses, especially in today’s high-inflation environment. Instead, give us a call, and we can discuss current conditions and what they mean for you.

Now is the time to rely on a Financial Professional for direction and guidance. You aren’t alone in these uncertain times. If you have a question about what is going on and need a financial partner to help you feel confidence about the current situation contact us and schedule a 15 minute consultation today: https://lnkd.in/gsCRjGpb

^{Risk Disclosure: Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Past performance does not guarantee future results.}^{This material is for information purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. The content is developed from sources believed to be providing accurate information; no warranty, expressed or implied, is made regarding the accuracy, adequacy, completeness, legality, reliability, or usefulness of any information. Consult your financial professional before making any investment decision. For illustrative use only.}