Yea, our portfolio is down 25% right now. Scary indeed, but I take comfort in knowing we won't be touching it for about 17 years - so we're going to be ok.
I'm trying to put as much new money into my stock funds at this time. Now that we're slipping into bear market territory (already there with NASDAQ/tech), it's a great time to invest new money as long as we can keep our jobs.
same here, I'm instead looking at how many shares I'm accumulating. right now I'm accumulating shares 25 percent faster than at the start of the year. it's going to be like a sling shot when everything is going back up.
My financial advisor proactively reaches out to me and asks if I want to setup a meeting to talk about the potential upcoming recession and I always say no, I'm good. I think they get lots of their customers come to them in a panic and they end up having to talk them off the ledge. The only time I want to talk to him is when I want to transfer more money into my portfolio.
27 year old here I'm looking at the market right now as a discount 😃 Seeing red kinda sucks in portfolio granted, but it's great for throwing extra cash in index funds
I need to catch up because even though I started investing in my twenties, I basically invested $0 dollars during my messy middle period (which I regret but I have two great kids to show for it). I ABSOLUTELY need this volatility so I can still hit my retirement goal number by 60.
Ignore that number 60 because you will still be investing at age 61. you won't be using all your retirement savings at the same time and it won't stop growing.
Thank you for this encouraging and informative episode! I, as a 20-something, fairly new investor and Financial Mutant, have been pretty unsure what to do because of all the news and naysayers. It’s hard to see your hard-earned money seemingly going down the drain. But I will stay the course and keep dumping all I can into investments because I’m in it for the long haul. Thanks guys!
I am really risk adverse, but my risk capacity is high (20-30 year before retiring). I spoke to the 457 rep and set my increases to be automated so I don’t look at my account for the next seven years. I hate looking at losses.
I really appreciate these guys content, as an early saver it's nice to get their reassurance that even though it hurts now, investing is still a good idea in this market. It's not about the market now but the market 35 years from now.
Great episode! Thanks for sharing. I do think it's important to mention that two of those forecasted recessions were thwarted by the Feds quantitative easing. If they didn't step in, the probability of a recession would have been significant. Hence why they stepped in. Also, some of the S&P rallies you mentioned were a DIRECT RESULT of the Fed's monetary policy (aka pumping money into the system and lowering interest rates). You cannot ignore that. This is largely one of the reasons this time is so different. We are heading into an economic slowdown and they will not be able to utilize the same policy tools they've used in the past. 1) Interest rates are historically low (tool #1) and they have not even begun to run off their balance sheet (tool #2) of 8.94 trillion. What I am hopeful about is the trillion dollars sitting in the reverse repo facility that can get flooded into the markets if things begin to collapse.
Thank you guys for this video. Thank you so much for the encouragement and information backed with historical data as a reminder not to panic during the bear market! I absolutely love your videos and always look forward to them every week. Thank you again and I have learned so much from you guys. Very educational, encouraging and motivating!! XOXO!
Maybe a recession is needed to cool down this housing market.. home prices are unaffordable right now.. Wallstreet is down, but home prices keep on climbing.. it's crazyyyy
This was for retired people. I thought they’d have some personal finance advice for those still working & concerned about the real economy. My concerns related to a recession don’t include my investments. A recession brings concerns about losing employment and cash flow. Reference to a bear market is clearly focused on investments & I don’t change anything, except maybe buy more. As I’m preparing for a recession, I’m checking the emergency fund, eliminating any leverage besides the mortgage, planning where to cut spending in the budget in anticipation of it becoming necessary. I actually beef up the cash for big purchases because things tend to be cheaper in a recession.
My portfolio is down 53% since all time highs but I’m ok with that because of my conviction in the one stock I own. I plan on adding more shares due to this macro economic downturn.
I only started my emergency savings this year at age 30. Thank goodness , bc I might need it if something bad happens and I can’t pay my bills with a paycheck. I was hoping that money might go toward a house one day, but probably not lol. Need to adjust my expectations to be okay with a pretty crappy life compared to the generation before.
I'd like to add i'm seeing all this with the BO method. Buying Opportunity. I've got a sizeable emergency fund and i'm still getting offered jobs by recruiters just about every week. Feels good to be in this place after years of being on the other end of cycle.
“Offered jobs by recruiters”. Doesn’t mean they are offering you jobs directly but asking you to interview for the positions, which does not mean guaranteed position. Last 10 years been getting tons of head hunters offering job interviews daily!
We also prepared for the downturn and paid off our mortgage 9 months ago and while maxing out 401ks and Roth IRAs with 0 debt of any kind, been building up cash as well. Instead of waiting we been buying on every dip as no one knows the bottom. Too many macro factors that no one can successfully predict what will happen. War in Ukraine could end out of no where, fed could reverse course and lower interest rates again or maybe interest rates will rise to 15-20% who knows.
I mean, if we're giving Biff a time machine and a stock market almanac, just using them to time the bottom of the S&P 500 index is such a waste! Heck just send me back a few months and I'd be your wealthiest customer 😁
What do you mean by “buy low” ? like, I should increase my 401k contribution now? I just have 401k (both Roth and standard) and then my cash savings (which I will use some to buy ibonds)
I’m wondering how a recession would effect the housing market? I imagine it cool down some but is there really enough supply of homes in the US to bring prices down again?
As long as you got enough spending cash for 5-7 years, you can leave the rest in high risk investments. In retirement you don't need to go all risk off.
Moral hazard - the fed is not on anyone's side other than with entrenched special interests - blame Jekyll island. Diversification is one of the very few ways to stay on the green zone right now My portfolio is up 14% and I'm doing just fine. It's a much better deal than letting it sit in savings or checking earning near 0-1% interest.
Well up at 14% in this present market in actually impressive. I was wondering if investing in a cumulative ETF during this next decade is ok. Or is it better to invest in a distributing ETF (even considering taxes)?
@@theexpendables3152 ETFs are cool. I have my funds across a number of securities, it's pretty much diversified. You should use algorithmic system; copy a licensed person more so one with experience of the past bear markets. Currently doing so with a CFA Josephine Guevara Laporte. Been quite consistent.
@@theexpendables3152 Nah, your money stays in your account. That's the ideal for this system. You can as well opt out anytime, just like Etoro or Collective 2. Go check out this lady and get in touch if you need help with this crazy market.
@@George-hl7jf I literally bought my house last year through this. My aggressive portfolio is still kicking in huge figures. What more can I say :) You either choose to DIY or get a help. It's up to you. At the end we all wanna make more money, right.
If you ran Monte Carlo simulation or back testing on Ramsey’s 7-10% withdrawal rate guidance; you’d know it doesn’t have a high success rate. Which makes me wonder why he’s featured on this channel often as the north star for many finance goals.
Respected for his teachings on discipline but far from our North Star. Dig deeper into our content and you will see we are maximizers of wealth building - that creates a big difference 👍
Unless something happens in the next few weeks we are already in a recession (GDP decline 2 consecutive quarters). Not fear mongering but this is already what is happening.
Are bonds still “risk off”. Is 2-4 year drawdown period for stocks still a reasonable assumption? It wouldn’t have worked in many countries. Does Monte Carlo simulation really work given that it uses random walk assumptions
Fun fact, if your portfolio loses 20% you need to gain 25% to break even. Similarly lose 50% and you need to gain 100% to break even. It’s harder to make money.
@@cyrusperkins9252 - in a bull setting DCA does reduce your cost basis but in a hardcore bear setting it can make your situation worse. Also, as your portfolio matures the amount you DCA each month/year tends to be a smaller and smaller percentage of your overall portfolio making it less impactful.
Here's a copy of the release Analytical Associates sent to media last week: Our Misery Index data shows that in the month of April 2022, the following variables spiked-up: Bankruptcies, First-time unemployment claims, Foreclosures, Evictions, Auto repossessions, Late bill payments including electricity, Store closures, Homelessness, and others. The Analytical Associates Misery Index for April 2022 points to a deep US recession imminently.
There's no Fed Put until 2023, so the stock market will continue to go down. There are 7 - 8 Fed interest rate hikes. Best to be in cash, and buy back when the S&P hits 3000 and Nasdaq hits 9000-10000
Nice content mate! So happy to announce that I have gained financial freedom by investing in digital currency. Now I know that multi creation of various streams of income is the ideal Principle for financial sustainability.
This is exactly why have been working with his signal cause i can't risk to have 6 figures just sleeping there in my coinbase not knowing what tomorrow holds for it
There are zero cases where "loss harvesting" makes any sense. If you sell at a $100 dollar loss, you save $15 in Taxes......... Where is the victory there? Even in your scenario where you sell on the new gains... Say you earn $100 on the next investment, you owe $15 in Taxes.... Net gain $0 Net Taxes $0. This is terrible advice.
Yea, our portfolio is down 25% right now. Scary indeed, but I take comfort in knowing we won't be touching it for about 17 years - so we're going to be ok.
I'm trying to put as much new money into my stock funds at this time. Now that we're slipping into bear market territory (already there with NASDAQ/tech), it's a great time to invest new money as long as we can keep our jobs.
Same here but geez it's hard to watch!!
Yeah. When I look at my portfolio I just tell myself " hope the market recovers in the next 30 years"
Same for us brother Chuck.
same here, I'm instead looking at how many shares I'm accumulating. right now I'm accumulating shares 25 percent faster than at the start of the year. it's going to be like a sling shot when everything is going back up.
This episode is gold. You've packed a huge amount of learnings and advice into this episode.
"This too shall pass.". That phrase can be applied to almost any situation including the current global and economic turbulence.
Nobody:
Absolutely nobody:
Bo: I am VERY very excited -
My financial advisor proactively reaches out to me and asks if I want to setup a meeting to talk about the potential upcoming recession and I always say no, I'm good. I think they get lots of their customers come to them in a panic and they end up having to talk them off the ledge. The only time I want to talk to him is when I want to transfer more money into my portfolio.
I’m down 16% YTD but I have 25 years til retirement. Keep loading up and Let it ride baby!
Same here! Buying at a discount!
Been waiting for this one. With all the noise in the media and on youtube and twitter I appreciate you guys keeping it grounded.
These guys are so fantastic. They have a long-term view that has helped me get excited at this time. 🤑
27 year old here
I'm looking at the market right now as a discount 😃 Seeing red kinda sucks in portfolio granted, but it's great for throwing extra cash in index funds
Exactly. Recessions are buying opportunities. They just really suck for people who are retired or about to retire.
I need to catch up because even though I started investing in my twenties, I basically invested $0 dollars during my messy middle period (which I regret but I have two great kids to show for it). I ABSOLUTELY need this volatility so I can still hit my retirement goal number by 60.
Ignore that number 60 because you will still be investing at age 61. you won't be using all your retirement savings at the same time and it won't stop growing.
Thank you for this encouraging and informative episode! I, as a 20-something, fairly new investor and Financial Mutant, have been pretty unsure what to do because of all the news and naysayers. It’s hard to see your hard-earned money seemingly going down the drain. But I will stay the course and keep dumping all I can into investments because I’m in it for the long haul. Thanks guys!
Invest in Vanguard Index fund VOO , Turn off the news, retire at 55, relax.........with love from Grandpa.
You will definitely thank yourself later.
Another amazing episode! Well done! And keep buying and keep moving forward!
I am really risk adverse, but my risk capacity is high (20-30 year before retiring). I spoke to the 457 rep and set my increases to be automated so I don’t look at my account for the next seven years. I hate looking at losses.
Stay in the market. Take the losses on the chin. It’s so simple. Stay in the market.
I got out in December and couldn't be happier 💰💰 Feel free to stay in and keep taking losses. I'll sit on cash and wait for things to smooth over
Thank you for making stock market information accessible and entertaining.
I really appreciate these guys content, as an early saver it's nice to get their reassurance that even though it hurts now, investing is still a good idea in this market. It's not about the market now but the market 35 years from now.
you two make a great team, excellent financial assessments commentaries. I just loaded up when the DOW dropped below 30700
As always, such great information!! Teaching us to all be contrarians, wealth is created in times of volatility like we are in now
Great episode! Thanks for sharing. I do think it's important to mention that two of those forecasted recessions were thwarted by the Feds quantitative easing. If they didn't step in, the probability of a recession would have been significant. Hence why they stepped in. Also, some of the S&P rallies you mentioned were a DIRECT RESULT of the Fed's monetary policy (aka pumping money into the system and lowering interest rates). You cannot ignore that. This is largely one of the reasons this time is so different. We are heading into an economic slowdown and they will not be able to utilize the same policy tools they've used in the past. 1) Interest rates are historically low (tool #1) and they have not even begun to run off their balance sheet (tool #2) of 8.94 trillion. What I am hopeful about is the trillion dollars sitting in the reverse repo facility that can get flooded into the markets if things begin to collapse.
Amazinggggg episode fellas. Great examples blended with entertainment. Thanks.
This was so informative and clear. You two are so helpful. Thank you !
Outlast the temporary, something I learned today. Good times (bull) and bad times (bear) are temporary. Stay the course.
Nasdaq is down over 30% already. Time to buy . Don’t carry credit card debt or be an idiot. Pretty easy
love to watch you show every time
Thank you guys for this video. Thank you so much for the encouragement and information backed with historical data as a reminder not to panic during the bear market! I absolutely love your videos and always look forward to them every week. Thank you again and I have learned so much from you guys. Very educational, encouraging and motivating!! XOXO!
Maybe a recession is needed to cool down this housing market.. home prices are unaffordable right now.. Wallstreet is down, but home prices keep on climbing.. it's crazyyyy
Land/homes are hard assets businesses can disappear
This was for retired people. I thought they’d have some personal finance advice for those still working & concerned about the real economy. My concerns related to a recession don’t include my investments. A recession brings concerns about losing employment and cash flow. Reference to a bear market is clearly focused on investments & I don’t change anything, except maybe buy more. As I’m preparing for a recession, I’m checking the emergency fund, eliminating any leverage besides the mortgage, planning where to cut spending in the budget in anticipation of it becoming necessary. I actually beef up the cash for big purchases because things tend to be cheaper in a recession.
Agreed, for young people years away build your EF and cut down on debt.
Thank you for providing finance information in a simple and entertaining way.
what is your suggestion for someone who knows nothing about investing where to start ?
Great Video. Thank you for posting.
This was really good guys, Lee up the good work
Love the show, dying at the Always Sunny Reference LOL
u 🔒
My portfolio is down 53% since all time highs but I’m ok with that because of my conviction in the one stock I own. I plan on adding more shares due to this macro economic downturn.
Great information guys .. thank you
Love these guys
I have increased my weekly DCA. this is a perfect time to stack up on high div yield stocks
Yeah I inherited a bunch in money and lump sum invested near the top, ouch! At least I have more cash to buy at lower prices too. Still hurts.
The Bo DENNIS system picture had me dying 🤣 6:16
I had to do a double take lol
It's a 5-star meme for a 5-star man!
You better know it!! I'm on my way!!
Price is Right reference made my day 😂
I only started my emergency savings this year at age 30. Thank goodness , bc I might need it if something bad happens and I can’t pay my bills with a paycheck. I was hoping that money might go toward a house one day, but probably not lol. Need to adjust my expectations to be okay with a pretty crappy life compared to the generation before.
And as of right now, the markets are up.
It goes up and down all the time. But the media are also scaring people.
I love that you guys used the "Dennis system" board from Always Sunny in Philadelphia lol
I'd like to add i'm seeing all this with the BO method. Buying Opportunity. I've got a sizeable emergency fund and i'm still getting offered jobs by recruiters just about every week. Feels good to be in this place after years of being on the other end of cycle.
“Offered jobs by recruiters”. Doesn’t mean they are offering you jobs directly but asking you to interview for the positions, which does not mean guaranteed position. Last 10 years been getting tons of head hunters offering job interviews daily!
We also prepared for the downturn and paid off our mortgage 9 months ago and while maxing out 401ks and Roth IRAs with 0 debt of any kind, been building up cash as well. Instead of waiting we been buying on every dip as no one knows the bottom. Too many macro factors that no one can successfully predict what will happen. War in Ukraine could end out of no where, fed could reverse course and lower interest rates again or maybe interest rates will rise to 15-20% who knows.
Great Back to the Future reference there
For young people with long term investing mindset, Bear market is party time.
yall do a good job
i lived through the 2000 and 2007-2008. we will be okay! :)
Amazing education!
I mean, if we're giving Biff a time machine and a stock market almanac, just using them to time the bottom of the S&P 500 index is such a waste! Heck just send me back a few months and I'd be your wealthiest customer 😁
Great episode 😊
Brilliant content and very timely... 😊
What do you mean by “buy low” ? like, I should increase my 401k contribution now? I just have 401k (both Roth and standard) and then my cash savings (which I will use some to buy ibonds)
I’m wondering how a recession would effect the housing market? I imagine it cool down some but is there really enough supply of homes in the US to bring prices down again?
I think it's going to be tougher times then we think, they might crash with the dollar making it relatively the same price
As long as you got enough spending cash for 5-7 years, you can leave the rest in high risk investments. In retirement you don't need to go all risk off.
Moral hazard - the fed is not on anyone's side other than with entrenched special interests - blame Jekyll island. Diversification is one of the very few ways to stay on the green zone right now My portfolio is up 14% and I'm doing just fine. It's a much better deal than letting it sit in savings or checking earning near 0-1% interest.
Well up at 14% in this present market in actually impressive. I was wondering if investing in a cumulative ETF during this next decade is ok. Or is it better to invest in a distributing ETF (even considering taxes)?
@@theexpendables3152 ETFs are cool. I have my funds across a number of securities, it's pretty much diversified. You should use algorithmic system; copy a licensed person more so one with experience of the past bear markets. Currently doing so with a CFA Josephine Guevara Laporte. Been quite consistent.
@@virgilhall6866 Do you just give out funds? What are the commissions and fees for such services?
@@theexpendables3152 Nah, your money stays in your account. That's the ideal for this system. You can as well opt out anytime, just like Etoro or Collective 2. Go check out this lady and get in touch if you need help with this crazy market.
@@George-hl7jf I literally bought my house last year through this. My aggressive portfolio is still kicking in huge figures. What more can I say :) You either choose to DIY or get a help. It's up to you. At the end we all wanna make more money, right.
Tricky thing is when to put in my retirement investment dollars for 2022. Now, wait for market to drop even more? i need a crystal ball.
When you said take a drink....I assumed you meant beer. I was like makes sense LOL!
Awesome!
Vti, schd, and chill 😎
Didn’t make it through the show live but guessing that crack by Bo at 47:52 was the shot clock running out? Don’t spend it all in one place.
During a rising interest rate environment what do you consider as a risk off asset?
We can have a secular bear.. those last a long long time, 1966-1982 and 2000-2013
Great episode. About to take a DRINK now
Looking back to 1980 is too convenient. I wonder if we limited that to 10 years (2012) how this would differ?
Recession is a Fire Sale on the stock market.
I SOLD EVERYTHING !!!
The always sunny reference is great. The money guys are becoming the meme guys!
If you ran Monte Carlo simulation or back testing on Ramsey’s 7-10% withdrawal rate guidance; you’d know it doesn’t have a high success rate. Which makes me wonder why he’s featured on this channel often as the north star for many finance goals.
Respected for his teachings on discipline but far from our North Star. Dig deeper into our content and you will see we are maximizers of wealth building - that creates a big difference 👍
Unless something happens in the next few weeks we are already in a recession (GDP decline 2 consecutive quarters). Not fear mongering but this is already what is happening.
Are bonds still “risk off”. Is 2-4 year drawdown period for stocks still a reasonable assumption? It wouldn’t have worked in many countries. Does Monte Carlo simulation really work given that it uses random walk assumptions
Deploying more soldiers in my army.
You guys are finally catching up to data from Jazz Wealth…
My risk tolerance is very high. My risk capacity is very low.
Fun fact, if your portfolio loses 20% you need to gain 25% to break even. Similarly lose 50% and you need to gain 100% to break even. It’s harder to make money.
Not necessarily when you are Investing Every month and dollar cost averaging.
@@cyrusperkins9252 - in a bull setting DCA does reduce your cost basis but in a hardcore bear setting it can make your situation worse. Also, as your portfolio matures the amount you DCA each month/year tends to be a smaller and smaller percentage of your overall portfolio making it less impactful.
an awesome video... I found this very useful ! subbed ! a fellow creator!
the irony is Ursula means bear.
DCA! Buy buy buy high and low
I guess retirement will have to wait 5 years until an adult can run the country. Thanks Brandon.
My army of dollar bills is getting fired lol
the bottomless can of beer.
BUY BUY BUY.
Here's a copy of the release Analytical Associates sent to media last week:
Our Misery Index data shows that in the month of April 2022, the following variables spiked-up:
Bankruptcies,
First-time unemployment claims,
Foreclosures,
Evictions,
Auto repossessions,
Late bill payments including electricity,
Store closures,
Homelessness, and others.
The Analytical Associates Misery Index for April 2022 points to a deep US recession imminently.
down 45% long term portfolio so scare
37:01
The stock market is looking into the future. The real recession will not begin until 2023.
You guys are too good at what you do to use weird faces in your thumbnail.
Lighten up
You’re too good to care about something so benign.
Y’all are going to need a new coozie that says “this beer cost $44” instead of $88 before this bear market is over.
It's already here, the depression is coming
There's no Fed Put until 2023, so the stock market will continue to go down. There are 7 - 8 Fed interest rate hikes. Best to be in cash, and buy back when the S&P hits 3000 and Nasdaq hits 9000-10000
Good one thinking it’s going that low
👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍
Nice content mate! So happy to announce that I have gained financial freedom by investing in digital currency. Now I know that multi creation of various streams of income is the ideal Principle for financial sustainability.
*To obtain financial freedom, one must be either a business owner, an investor or both, generating passive income, particularly on a monthly basis.*
This is exactly why have been working with his signal cause i can't risk to have 6 figures just sleeping there in my coinbase not knowing what tomorrow holds for it
As a trader myself, mostly had few gains and more losses but with Mr joel signals, i have been in the green consistently
Wow 😮I’m just shocked you mentioned and recommended Mr joel, I thought people don’t know him
How to start?
There are zero cases where "loss harvesting" makes any sense. If you sell at a $100 dollar loss, you save $15 in Taxes......... Where is the victory there?
Even in your scenario where you sell on the new gains... Say you earn $100 on the next investment, you owe $15 in Taxes.... Net gain $0 Net Taxes $0.
This is terrible advice.
LETS GO BRANDON!!!!!! no more mean tweets babayyyyyyy......the grown ups are back in charge!
These guys are so scammy. If you want to make $, invest in real estate.
Look up 1940s property value. Got nothing on the money you would have made from investing in S&P500 in the same dates
Real estate is too much work. I prefer passive income from stocks
Wrong and no thank you.
@@chucknorris5141 Wow, what a compelling argument 😒
Lol these are the least scammy guys on TH-cam
Lol we are in a bear market 100%
Good show guys. Thanks!