Bear Markets/Crash

Bear Market Playbook

Although we are not technically in a bear market (the S&P 500 Index has not declined 20%) it absolutely feels like one. The tech-heavy NASDAQ index is 26% off its highs, and so are small-cap stocks. Many of the darling stocks of the latest growth rally have been decimated. These are some of the most…

Flush It Out

It’s brutal out there. We had two very strong down days on Friday and Monday, with no signs of a relief bounce today.  The S&P 500 Index closed down another 3.2% on Monday, now down over 16% year-to-date. Everyone expects we will enter official bear market territory, with the averages down 20% or more. CNBC…

Don’t Panic Sell

The markets have been ugly for the past few days. The Nasdaq was down 5% yesterday and is now down over 21% year-to-date. There’s nowhere to hide either. Bonds are having their worst start to a year (-10.79%) on record. Inflation is running at a 40-year high, and the Fed is aggressively tightening monetary policy….

Start Date Randomness

I’ve been the primary advisor to clients for 12 years, and my career in wealth management is approaching two decades. Each client hired me on a different date over those 12 years, and since I joined RWM four years ago, this has been at a pace of about one new client every month. As a…

Get Even-itis

Investors struggle with many behavioral biases, but Loss Aversion is perhaps the bias that poses the greatest challenge. Loss aversion simply means that losses hurt twice as bad as a gain of equal value. This is a concept was first quantified by Amos Tversky and Daniel Kahneman in their pivotal 1979 paper titled Prospect Theory….

Is This The End of The FAANGS?

Stocks are off to a rocky start this year. For the first time in a long time, growth stocks are missing their earnings expectations, and their stock prices are falling off a cliff. I had almost forgotten what it’s like to see a company miss by a penny and drop like a rock. Even though…

We Don’t Get to Choose

We don’t get to choose when the market sells off. For most of us, this dip in the market is just another aberration on the long journey from start to finish. But for some, this market correction is occurring at a very sensitive time. An estimated 3 million people have chosen to retire early since…

Every Single Time

Stocks can go down? How quickly we forget. I am amazed to see investors get spooked every single time. Stocks typically selloff roughly 7-10% at least once a year. A few months later, we’ve forgotten the reason for the selloff because markets recover and move on to new highs. The graph below shows the largest…

My Husband is a Robinhood Trader

In early March, with the stock market in free fall, my husband and I began discussing our investment plan. Even though it was a scary time, the stock market was on sale. With our long time horizon, we recognized a buying opportunity. He has nagged me for years about individual stock picks, but my stock…

Caught in the Rain

I am visiting family in Alabama this week and enjoying daily hikes in the hilly woods near their home. Here among the red clay and pine trees, I am in my element. There is no place on Earth that I am not only from but of than central Alabama. I feel it when I arrive,…