Page 32 - April2022

FINANCIAL PLANNING
As I write this, most of the world is experiencing a series of life-altering events. As Americans, we are suffering severe inflation as we see gas prices and necessity items at extreme levels. Inflation in the United States is the highest it’s been since 1982. The Russia and Ukraine conflict has also spread fear and caused Americans to worry about the U.S. joining the action. There have been protests of all sorts and
I think it’s safe to say the world has been chaotic since Covid-19. Just as we are
moving past Covid, much of the media is onto another subject that spreads fear. Why do you think the news talks about negative topics? It’s because that’s what sells. Fear sells. Psychologically, we are more attracted to negative news and the drama that comes with it. No matter what year it is, there is always going to be some form of conflict, recession, or pandemic. I want to talk about what these times mean for an investor. Following herd mentality, the mindset is to panic and want to sell your investments when scary events take
place. With that being said, I want to take you back in time to look at some major crisis events and how the market responded.
Vladimir Putin choosing to invade Ukraine has been a newsworthy event. The Ukrainians are fighting valiantly to defend their freedom. Americans are concerned with Putin’s mental health and wonder if things will escalate to
the point of World War III. The stock market has seen a correction for the first time since the 2020 pandemic. Many people don’t realize that a 10% correction happens at least once
A A T T R R I I P P B B A AC C K K I I N N T T I I M M E E by Cade Peterson, Financial Planning Associate
30 SPEEDHORSE April 2022