The StockMarket remains near all-time high levels. In addition the last several years have been very good to investors. Could the stock market be running out of steam? A significant Correction or a Bear Market is likely to happen at some point. We don’t know when it will start or how bad it will be. But now is a great time to ask yourself, “Are You Ready for the Next Bear Market?”
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Some Data about Bear Markets and Corrections
Bear Markets and Corrections are a normal part of the investing process. In this clip we share some statistics about what you should expect as an investor going forward.
The Most Common Mistake We See People Make During A Bear Market
Any time prices begin to drop the fear level of investors increases dramatically. Here is one of the biggest mistakes we see people make when we encounter these price drops.
When should you start thinking about the next bear market?
The bear market experienced during the Covid Pandemic was the shortest on record. The stock market has not only recovered from that event, but posted significant gains. Now we are dealing with higher inflation, potentially higher interest rates, and other issues. It is time to start thinking ahead.
What is Rebalancing?
Over time, your asset allocation changes. You may find that the stock portion of your account is now more than you thought it was. Without making periodic adjustments. You may find there is more risk in your portfolio than you originally believed.
Should You go to Cash?
Since the stock market is still near record-high levels, should you consider going to cash? If prices fall, you may discover it was the right choice. But what if the market continues to march higher?
Lessons from Past Bear Markets
Experience is the best teacher. A few of our advisors have been through some fairly signification bear market events (1987, the Dot Com bust, the Great Recession, The Covid Pandemic). What were the big lessons learned from those?
Is it Time to Reduce Risk?
Remember the saying is, “Buy low, sell high.” not the other way around. Since we are close to record high levels, is it time to think about reducing your risk? For some people, it may be a good time to reassess how much risk you are taking.
How Much Risk Are You Taking?
How can we tell how much risk is in your portfolio? We talk about a software tool we can use to help evaluate how much risk is in your investment accounts. It helps us “stress test” what could happen if the market heads lower.
Do You Know How Much Risk Is In Your Portfolio?
We have an easy way to find out. Click on the button to the right, answer a few questions, and we will follow up with you to provide a complimentary risk assessment of your investments.
The Hardest Thing to do: Buy Stocks on Sale
Doing nothing is the second hardest thing to do when your account values are declining. The hardest thing to do is to buy stocks when they are significantly lower.
Is Surviving a Bear Market Harder Than it used to be?
We are bombarded with a constant stream of information. There are constant reminders of the potential doom and gloom on the horizon. Is it harder to be an investor now than it used to be?
Retiring Soon? Here’s What You Should Consider Right Now.
If you are on the doorstep of your retirement (less than 3 years away), here is what you should be thinking about with your retirement savings.
You can watch the full episode below.