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Adapting Your Investment Strategy for the New Normal
As we discussed in last week’s episodes, 2020 has produced significant market highs, only to be followed by some of the deepest one-day drops the market has ever seen.
If we look further into history, we realize that this isn’t just about the coronavirus; this is actually a new pattern of how the market performs. The new normal is insane market highs and vicious lows.
We need to accept this to be the new reality of investing in the stock market, and take action to fortify our investments and financial security.
What are the past market conditions that have given strong indications toward our current situation? How can we put the right plan in place in response to the new normal?
In this episode I talk about what we can expect from the stock market going forward, and how to plan accordingly for it.
3 Things We Learned From This Episode
What the market looks like in the new normalFrom the low of the great recession to February 2020, we saw the longest period of economic expansion, but then this was followed by the fast and furious coronavirus crash - 24% in 40 days.
Why we need a plan that goes beyond staying in the stock market and riding out the volatilityThe last two corrections each took 5 years to recover from, so if you’re someone who is retiring in 10 years, you cannot afford to have your money in the stock market with all the volatility.
What you need to know about your brokerYour best interests are not always aligned with your broker’s best interest and what makes them money. In a good market, it’s less about the broker’s ability and more about the good results of the market.
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By Rebecca Walser
4.8
8787 ratings
As we discussed in last week’s episodes, 2020 has produced significant market highs, only to be followed by some of the deepest one-day drops the market has ever seen.
If we look further into history, we realize that this isn’t just about the coronavirus; this is actually a new pattern of how the market performs. The new normal is insane market highs and vicious lows.
We need to accept this to be the new reality of investing in the stock market, and take action to fortify our investments and financial security.
What are the past market conditions that have given strong indications toward our current situation? How can we put the right plan in place in response to the new normal?
In this episode I talk about what we can expect from the stock market going forward, and how to plan accordingly for it.
3 Things We Learned From This Episode
What the market looks like in the new normalFrom the low of the great recession to February 2020, we saw the longest period of economic expansion, but then this was followed by the fast and furious coronavirus crash - 24% in 40 days.
Why we need a plan that goes beyond staying in the stock market and riding out the volatilityThe last two corrections each took 5 years to recover from, so if you’re someone who is retiring in 10 years, you cannot afford to have your money in the stock market with all the volatility.
What you need to know about your brokerYour best interests are not always aligned with your broker’s best interest and what makes them money. In a good market, it’s less about the broker’s ability and more about the good results of the market.