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FINANCIAL PLANNING
The most successful investors are made during volatile times like the one we are in now.
by bank customers as well. How does your bank’s balance sheet look? Banks should be putting a major focus on depositor safety and shareholder returns, not necessarily social policies that are not going to benefit depositors or shareholders.
of 2008, which was the last major recession in the United States economy. We actually believe most of this upcoming recession is already priced in. When you have inflation through the roof, the fed raising rates, a war in Ukraine, and banks failing, you are going to see some
trended higher. I wanted to use a chart dating back to only a few years ago to illustrate how the stock market works. We all know that dating back to the 40s or 50s the trend is a long climb upwards. On a chart like that, all the major recessions and economic disasters
MARKET OUTLOOK
As I’m sure you have heard, a recession is likely to be announced by the end of the year. Many people hear this and immediately think
market volatility.
This chart shows the S&P 500
performance dating back to 2016. There are several significant events that took place over the last seven years. However, the market still
look so small. On this chart, the drops seem much more severe.
For example, COVID was a very steep decline following by a rocket ship upwards and it only took a couple of months.
Where I’m going with this is that this time is not different. This next election in 2024 is not going to make or break our country. We will make it through this inflationary environment. When the seat belt light comes on when you’re on a plane, you don’t run up to the captain and
tell him that you want a parachute to jump out of the plane. Instead, you buckle up and stay seated, even if it’s uncomfortable for a while.
I love this analogy because it is so relatable. The most successful investors are made during volatile times like the one we are in now.
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