A lot of things have been happening around the world recently. We aren’t necessarily in a free fall, but the downturned market may be making you nervous. On today’s episode, we are going to explore some of the current events affecting the market and the implication these events may have for your retirement.
If you are watching your 401(k) every day you probably noticed the dips it’s been taking since the Russian invasion of Ukraine. This can be nerve-racking for anyone, especially someone without a plan. But, it’s important to remember that we aren’t seeing dramatic free falls.
However, we probably will be seeing very real repercussions of this conflict especially when it comes to energy. Coupled with already high inflation, what can we expect? We can probably expect record-breaking prices for energy. The market doesn’t like uncertainty and it’s reacting.
We look at both the DOW and the S&P, but compared to March 15th the DOW is down about 1,000 points. That’s not a lot but may cause some worry for pre-retirees and retirees. If you are feeling antsy understand that this is just part of investing and you should have a plan for any kind of market trend. We want to have a risk level in your plan that doesn’t harm your long-term goals. At the end of the day, we don’t know if this is the start of a prolonged downturn or not. But the market is the best tool to outpace inflation.
You have to have a plan for inflation, meaning you have to have some sort of growth plan. Really high inflation doesn’t usually last long. A diversified and risk-appropriate plan can get you through the rough times when it comes to inflation and the market.
Listen to the entire episode or skip ahead using the timestamps below.
[0:38] – It’s tax time!
[1:01 ]– Russia’s impact on the market
[3:36 ]– The energy conversation
[4:48] – DOW has fallen 1,000 points
[7:23 ]– Inflation is also overdue
[12:20] – What defines a bear market?
[13:52] – Having an emergency fund
[16:17] – Is 2022 still hopeful?
[18:03] – Is this hyperinflation?
A Quotable Moment:
“That’s what the markets don’t like. It doesn’t like uncertainty. Any time there’s not some sort of certainty or direction, it gets nervous and starts to react.”
-Phil Putney
