Budgets and Bear Markets
| Read. Listen. Watch.Times of crisis can bring with them unpredictability. We are all likely experiencing a change in our financial holdings, whether due to layoffs, reduced hours or wages, or through increased expenses as we navigate this current situation. We’ve put together some resources that will hopefully provide some financial solace and guidance as we enter a new month. Check them out below:Read: This article from a YNAB user highlights how utilizing a budget can change even a 75% reduction in pay from a crisis to an inconvenience. Some of you may be experiencing a similar trend in your finances right now from an income perspective – but if you’ve worked hard on your budget this situation doesn’t have to up-end your plans. YNAB also put together this video on budgeting in uncertain times. Trust your budget!Listen: Dr. Jim Dahle of White Coat Investor has a great podcast episode detailing a Bear Market Action Plan. He highlights what TO do in a bear market, and definitively what NOT to do in a bear market. He offers very steady advice for all of us where emotions may be running high with what to do given the current situation nestled in a pandemic.Watch: While this is not a video, the visual image is strong – check out this graphic that condenses the history of bear and bull markets since 1926. An interesting summary: the average bear market lasted 1.3 years with an average cumulative loss of -36%. The average bull market lasted 6.6 years with an average cumulative total return of 339%. Keep your eyes on the long-term view, not the short-term.If you find the information provided valuable, please pass this email along to your family and friends! Better yet, recommend them to subscribe to this monthly newsletter by signing up on our website! You can click on the links below to access this month’s resources. Thanks for reading, listening, and watching! |
Leave a Reply
Want to join the discussion?Feel free to contribute!